BC Corporation sold $55,000,000,8%, 10-year bonds on January 1, 2022. The bonds apply interest on July 1 and January 1. BC uses the straight-line method to amortize bond premium or discount. Assume no interest accrued on June 30.

Instructions

1. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest that happens for 2022, assuming that the bonds sold at 105.

2. Prepare journal entries as part (1), assuming that the bond sold at 98.

3. Show statement of financial position presentation for each bond issued on December 31, 2022.