Required information

On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $290,000, 8 percent bond issue for $271,387. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount.

Required:

1. 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.)

Record the issuance of bonds for $271,387 with a face value of $290,000. Note: Enter debits before credits. General Journal Debit Credit Date January 01 Record the interest payment on December 31. Note: Enter debits before credits. General Journal Debit Credit Date December 31