Straight-Line Discount Amortization

Bryan Company issued $840,000 of 12% face value bonds on january 1, 2013, for $807,000. The bonds are due December 31, 2015 and pay interest semi-annually on June 30 and December 31. Bryan uses the straight-line amortization method.

Prepare the journal entries to record the issuance of the bonds and the first two interest payments. For a compound transaction, if an amount box does not require an entry, leave it blank.