Keystone Industries issued bonds to finance an expansion.
| Date | Event |
|---|
| January 1 | Issued $200,000 of 6%, 5-year bonds at par (face value). Interest is paid semiannually on June 30 and December 31. |
| June 30 | Paid the semiannual bond interest. |
| December 31 | Paid the semiannual bond interest. |
Required: Prepare the journal entries for the bond issue and both semiannual interest payments. Each interest payment is $200,000 × 6% × 6/12.