Prepare the necessary entries for 2018, 2019 and 2020 for the following events using the fair value method. If no entry is needed, write "No Entry Necessary."

Home depot issued a $1,000,000, 6% bond, at 92 on January 1, 2018 maturing in 5 years, interest paid semiannually, on each June 30 and December 31. The market rate of interest on January l, was 8%.

Required:

1. Prepare an effective interest schedule for 2 years, 2018 and 2019.
2. Prepare the journal entry to record the interest on June 30, 2018.