On January 1, Driftwood Industries issues 10 percent, 10-year bonds payable with a maturity value of $110,000. The bonds sell at 98 and pay interest on January 1 and July 1. Driftwood Industries amortizes any bond discount or premium by the straight-line method. Requirements 1. Record the issuance of the bonds on January 1. 2. Record the semiannual interest payment and amortization of any bond discount or premium on July 1. Requirement 1. Record the issuance of the bonds on January 1. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Jan 1 Cash 107,800 2,200 Discount on bonds payable Bonds payable 110,000 Requirement 2. Record the semiannual interest payment and amortization of any bond discount or premium on July 1. (Round your answers to the nearest whole number.) Journal Entry Date Accounts Debit Credit Jul 1 Interest expense Discount on bonds payable Cash