The long-term debt section of the Panza Corporation”s balance sheet at the end of its fiscal year,…The long-term debt section of the Panza Corporation”s balance sheet at the end of its fiscal year,…

The long-term debt section of the Panza Corporation’s balance sheet at the end of its fiscal year, December 31, 20×7, is as follows:

Long-term liabilities

 

 

Bonds payable—8%, interest payable

 

 

1/1 and 7/1, due 12/31/16

$500,000

 

Less unamortized bond discount

40,000

$460,000

Prepare entries in journal form relevant to the interest payments on July 1, 20×7, December 31, 20×7, and January 1, 20×8. Assume a market interest rate of 10 percent.