Tranquil Sea Travel Inc. issues $3,200,000 of 10-year, 10% bonds dated January 1, 2021. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $2,960,000 sales price less the $60,000 fee charged by Tranquil Sea's investment bank. Tranquil Sea's year-end is December 31. Required a. Prepare the journal entry to record the issuance of the bonds on January 1, 2021. Date Credit Jan. 1.2021 Accounts Cash (Sales proceeds) Bonds payable Cash (Transaction costs) Debit 2,960,000 2,900,000 60,000 Before journalizing entries (b) and (c), prepare an amortization schedule for the bonds through the first two semi-annual interest periods. (Use a financial calculator to compute the semi-annual effective interest rate, and round all currency amounts to the nearest whole dollar.) Semi-annual interest expense at 5 % Date Interest paid Discount amortized 2021 Jan. 1 Amortized cost 2021 Jul. 1 172000 160000 12000 2022 Jan. 1 160000