On January 1, 2020, Denver Corporation issued 20-year, 8% bond with a maturity value of $500,000. The bond sells at 110.625 and pay interest on July 1 and January 1. Denver Corporation amortizes the bond using the effective interest rate method. The market rate is 7%.

Required:

1. Prepare a bond amortization schedule for the first 6 semi-annual interest payments.
2. Prepare the journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31 (company has a year end of December 31). Explanations are not required.