A Company Issued 10%, 5-Year Bonds with a Par Value

A company issued 10%, 5-year bonds with a par value of $2,000,000, on January 1, 2010. 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.