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Coffman Company sold bonds with a face value of $1,000,000 for $913,815. The bonds have a...

Coffman Company sold bonds with a face value of $1,000,000 for $913,815. The bonds have a coupon rate of 9 percent, mature in 6 years, and pay interest semiannually every June 30 and December 31.

All of the bonds were sold on January 1 of this year. Using a discount account, record the sale of the bonds on January 1 and the payment of interest on June 30 of this year. Coffman uses the effective-interest amortization method. Assume an annual market rate of interest of 11 percent. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round final answers to the nearest whole dollar.)

Journey Entry:

Record the sale of the bonds on January 1.

Record the payment of interest on June 30 using the effective-interest amortization method.

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