On July 1,2018,Shannon Equipment Dealer issued $590,000 of 6% bonds payable that mature in seven years.These bonds were issued at face value and pay interest each June 30 and December 31.Each semiannual interest payment will be higher than the interest expense.

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Each semiannual interest payment will be equal to the interest expense because the bonds were issued at face value, and the interest rate is fixed at 6%. Interest expense is calculated based on the face value and the stated interest rate.

On July 1,2018,Shannon Equipment Dealer Issued $590,000 of 6% Bonds