Splish Brothers Inc. issued $770,000 of 10.40%, 19-year bonds on January 1, 2020, at 103. Interest is payable semi-annually on July 1 and January 1. Splish Brothers Inc. uses the effective interest method of amortization for any bond premium or discount. Assume an effective yield of 10.00%. (With a market rate of 10.00%, the issue price would be slightly higher. For simplicity, ignore this.)

Prepare the journal entry to record the accrual of interest and the related amortization on December 31, 2020.