Complete the journal entry
Southwest Corporation issued bonds with the following details:
Face value: $640,000
Interest: 10 percent per year payable each December 31
Terms: Bonds dated January 1, 2015, due five years from that date
The annual accounting period ends December 31. The bonds were issued at 103 on January 1, 2015, when the market interest rate was 9 percent. Assume the company uses straight-line amortization and adjusts for any rounding errors when recording interest expense in the final year.