1. Record the bond issue.

2. Record the first semiannual interest payment.

3. Record the second semiannual interest payment.

On January 1, 2021, Universe of Fun issues $860,000, 9% bonds that mature in 20 years. The market Interest rate for bonds of similar risk and maturity is 10%, and the bonds issue for $786,216. Interest is paid semiannually on June 30 and December 31. 2. & 3. Record the issuance of the bonds on January 1, the interest payments on June 30, and December 31, 2021 (If no Journal entry is required for a particular transaction, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.)