Hogan Company issued $500,000, 8%, 10-year bonds on January 1, 2007, at 96 1/2. Interest is payable annually on January...

Hogan Company issued $500,000, 8%, 10-year bonds on January 1, 2007, at 96 1/2. Interest is payable annually on January 1. Hogan uses the straight-line method of amortization and has a calendar year end. Prepare the necessary journal entries for January 1 and December 31, 2007.