On December 31, 1989, Molly Corporation sold \(\$ 2.4\) million of its own \(13.5 \%\), 10 -year bonds. The bonds were dated December 31, 1989, with interest payable on each June 30 and December 31, and were sold to yield the buyers a \(12 \%\) annual return. The corporation uses the straight-line method of amortizing premium or discount.

\section*{Required}

1. Prepare a calculation to show the price at which the bonds were sold. (Use the present value tables, Tables \(10-1\) and 10-2, pages 409 and 411.)

2. Prepare a form with the columnar headings of Illustration 11-5 and fill in the amounts for the first two interest periods of the bond issue. Round all amounts to the nearest whole dollar.

3. Prepare entries in general journal form to record the sale of the bonds and the first two payments of interest.