Jan. 1

 Issued $2,000,000 of 9.2 percent, 10-year bonds dated January 1, 2014, with interest payable on June 30 and December 31. The bonds were sold at 98.1, resulting in an effective interest rate of 9.5 percent.

 Apr. 1

 Issued $4,000,000 of 9.8 percent, 10-year bonds dated April 1, 2014, with interest payable on March 31 and September 30. The bonds were sold at 101, resulting in an effective interest rate of 9.5 percent.

 June 30

Paid semiannual interest on the January 1 issue and amortized the discount, using the effective interest method.

Sept. 30

Paid semiannual interest on the

April 1

issue and amortized the premium, using the effective interest method. Dec. 31 Paid semiannual interest on the

 January 1

issue and amortized the discount, using the effective interest method. 31 Made an end-of-year adjusting entry to accrue interest on the April 1 issue and to amortize half the premium applicable to the second interest period.

2015 Mar. 31

 Paid semiannual interest on the April 1 issue and amortized the premium applicable to the second half of the second interest period.