On January 1, 2018, Seton Corporation sold a $10,000,000, 5.5 percent bond issue. The bonds were dated January 1, 2018, had a yield of 6 percent, pay interest each December 31, and mature 10 years from January 1, 2018.

Required:
1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record the interest payment on December 31, 2018. Use straight-line amortization.
3. Show how the bond interest expense and the bonds payable should be reported on the financial statements for 2018.