A.) On January 1, 2021, $1040000, 5-year, 7% bonds, were issued for $997819. The interest rate in effect when the bonds were issued was 8%. Interest is paid semi-annually on January 1 and July 1. How much interest is paid at each interest payment date?

$72800

$83200

$36400

$41600

B.) Swifty Corporation issues 1,000, 10-year, 6%, $1000 bonds dated January 1, 2021, at 98. The journal entry to record the issue will show a

debit to Cash for $980000.

debit to Cash for $1000000.

credit to Bonds Payable for $1000000.

credit to Discount on Bonds Payable for $20000.