A Company Issued 10%, Five-Year Bonds with a Par Value

A company issued 10%, five-year bonds with a par value of $2,000,000, on January 1, 2013. Interest is to be paid semiannually each June 30 and December 31. The bonds were sold at $2,162,290 to yield the buyers an 8% annual return. The company uses the effective interest method of amortization.
(1) Prepare an amortization table for the first two semiannual payment periods using the format shown below.
$\begin{array}{|c|c|c|c|c|c}\hline \begin{array}{c}\text { Semiannual } \\\text { Interest } \\\text { Period }\end{array} & \begin{array}{c}\text { Cash Interest } \\\text { Paid }\end{array} & \begin{array}{c}\text { Bond Interest } \\\text { Expense }\end{array} & \begin{array}{c}\text { Premium } \\\text { Amortization }\end{array} & \begin{array}{c}\text { Unamortized } \\\text { Premium }\end{array} & \begin{array}{c}\text { Carrying } \\\text { Value }\end{array} \\\hline\end{array}$ (2) Prepare the general journal entry to record the first semiannual interest payment.