On January 1 of the current year, a company issued bonds dated January 1 with a par value of $250,000. The bonds mature in 5 years. The contract rate of interest is 10%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $244,000. The company uses the straight-line method of amortization. Required: (a) Prepare the journal entry to record issuance of the bonds on January 1 of the current year (6 points possible). (b) Prepare the journal entry to record the first interest payment on June 30 of the current year (6 points possible). (a) Date General Journal Debit Credit January 1 Cash 244,000 Discount on bonds payable 6,000 Bonds Payable 250,000 (b) Date General Journal