Bangor Corporation issued $2\%,15-$year bonds with a face value of $$1,200,000$ at a price of $91$ on July $1,2021.$ The bonds pay interest each January $1$ and July $1.$ Bangor uses the straight$-$line amortization method for all bond premiums and discounts. The company has a fiscal year$-$end of December $31.$

Read the requirements.

Requirement $1.$ Record the issuance of the bonds on July $1,2021.($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Journal Entry

Date

Accounts

Debit

Credit

$2021$

Jul $1$

$$

$$

$$

$$

$$

$$

$$

Requirements

Record the issuance of the bonds on July $1,2021.$

Record the accrual for the cash interest payable on the bonds and the amortization of any premium or discount on the bonds on December $31,2021.$

Show how the accounts related to the bonds issued on July $1,2021,$ would be reported on Bangor's balance sheet as of December $31,2021.$