Bb Homework $14-5$

Sportswear Corporation issued $$10,000,000$ of $10\%$ bonds on January $1,2017,$ due on January $1,2027.$ The interest is to be paid twice a year on July $1$ and January $1.$ The bonds were sold for $$10,500,000.$ Sportswear Corporation closes its books annually on December $31.$ Sportswear uses the straight$-$line method of amortization.

$($a$)$ Prepare all necessary journal entries for the year $2017.$

$($b$)$ Identify the carrying value of the bonds at year$-$end for $2017.$