On June 30, Driftwood Limited issues 6%, 20-year bonds payable with a face value of $120,000. The bonds are issued at 88 and pay interest on June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Requirements 1. Journalize the issuance of the bonds on June 30. 2. Joumalize the semiannual interest payment and amortization of the bond discount on December 31. Requirement 1. Journalize the issuance of the bonds on June 30. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Date Accounts and Explanation Debit Credit Jun. 30 Cash 105,600 Discount on Bonds Payable 14,400 Bonds Payable 120,000 Issued bonds at a discount. Requirement 2. Journalize the semiannual interest payment and amortization of the bond discount on December 31. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Date Accounts and Explanation Debit Credit Dec. 31 Interest Expense Discount on Bonds Payable 360 Cash Paid semiannual interest and amortized discount