On January 1, 2018 Bringham Company issues $600,000, 10 year, 6% semi-annual bonds. One the issue date, the market rate is 5%, receiving cash of $640,000.

Required:

• Prepare the journal entry to record the issuance of the bond.

• Prepare the journal entry for the first semi-annual interest payment and amortization of the bond discount or premium using the straight line method of amortization.

• Prepare the journal entry for the second semi-annual interest payment and amortization of the bond discount or premium using the straight line method of amortization.