Yale Corporation issued to Zap Corporation $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Assume that the company uses the straight-line amortization method. If the bonds were sold at 97, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment.

Account NameDebitCredita. Jan. 1Interest Expense0 Discount on Bonds Payable0 Cash0*To record bond issuanceb. June 30Interest Expense0 Discount on Bonds Payable0 Cash0*To record interest payment