Specialty Autoparts Inc. issued $160,000 of 8%, 10-year bonds at a price of 89 on January 31, 2017. The market interest rate at the date of issuance was 10%, and the standard bonds pay interest semi-annually. 1. Prepare an effective interest amortization table for the bonds through the first three interest payments. 2. Record Specialty's issuance of the bonds on January 31, 2017, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2017. Explanations are not required 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) Specialty Autoparts Amortization Table B D E Semi-annual Interest Date Interest Payment (4% of Maturity Value) Interest Expense (5% of Preceding Bond Carrying Amount) Bond Discount Amortization (B-A) Bond Discount Account Balance (Preceding D-C) Bond Carrying Amount ($160,000 -D) Jan 31, 2017 July 31, 2017 Jan 31, 2018 July 31, 2018 2. Record Specialty's issuance of the bonds on January 31, 2017, and payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2017. (Record debits first, then credits. Explanations are not required.) Start by recording the issuance of bonds on January 31, 2017. Journal Entry Accounts 2017 Debit Credit Jan 31 Cash Discount on Bonds Payable Bonds Payable Now, record the payment of the first semi-annual interest amount and amortization of the bonds on July 31, 2017 Journal Entry 2017 Accounts Debit Credit July 31 Interest Expense Discount on Bonds Payable Cash