On January 1, 2019, Drennen Inc. issued $3.6 million face amount of 12-year, 18% stated rate bonds when market interest rates were 16%. The bonds pay semiannual interest each June 30 and December 31 and mature on December 31, 2030. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)

b-2. Assume instead that the proceeds were $3,562,000. Record the journal entry to show the payment of semiannual interest and the related discount amortization on June 30, 2019, assuming that the discount of $38,000 is amortized on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet

• Record the semiannual cash payment and amortization of discount.

Note: Enter debits before credits.

Event	General Journal	Debit	Credit
1	Interest expense
	Discount on bonds payable
	Cash