Prepare the journal entries to record the first two semiannual interest payment

At issue date: Unamortized Premium 162,290 Carrying Value 2,162,290 1st Payment Cash Payment 100,000 (2,000,000 x 5% stated rate) Interest Expense 86,492 (2,162,290 x 4% effective interest) Premium Amortization 13,508 (100,000 - 86,492) Unamortized Premium 148,782 (162,290 - 13,508) Carrying Value 2,148,782 (2,162,290 - 13,508) 2nd Payment Cash Payment 100,000 (2,000,000 x 5% stated rate) Interest Expense 85,951 (2,148,782 x 4% effective interest) Premium Amortization 14,049 (100,000 - 85,951) Unamortized Premium 134,733 (148,782 - 14,049) Carrying Value 2,134,733 (2,148,782 - 14,049)