A Corporation issued $450,000 face value, 4% 10-year bonds on January 1, Year 1 for $383,063. This price resulted in an effective interest rate of 6% on the bonds. Interest is payable semi-annually on June 30 and December 31.

1. Prepare the journal entry to record the first payment of interest on June 30, Year 1.
2. Determine carrying value on December 31, Year 1, after the interest payments has been made