$1-$

On January $1,2022,$ XYZ Enterprises issued $6\%$ bonds dated January $1,2022,$ with a face amount of $$10$ million. The bonds mature in $10$ years. For bonds of similar risk and maturity, the market yield is $8\%.$ Interest is paid semiannually on June $30$ and December $31.$

Required:

$(1.)$ Determine the price of the bonds at January $1,2022.$

$(2.)$ Prepare the journal entry to record the bond issuance by XYZ on January $1,2022.$

$(3.)$ Prepare the journal entry to record interest on June $30,2022,$ using the effective interest method.

$(4.)$ Prepare the journal entry to record interest on December $31,2022,$ using the effective interest method.

$(5.)$ Present in good form on the financial statements of $12-31-2022$ the information relating to the bonds issue.