Campbell, Inc. produces and sells outdoor equipment. On July $1,$ Year $1,$ Campbell, Inc. issued $$25,000,000$ of $10-$year, $10\%$ bonds at a market $($effective$)$ interest rate of $9\%,$ receiving cash of $$26,625,925.$ Interest on the bonds is payable semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.

Required:

$1.$ Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.$*$

$2.$ Journalize the entries to record the following:$*$

a$.$ The first semiannual interest payment on December $31,$ Year $1,$ and the amortization of the bond premium, using the interest method. $($Round to the nearest dollar.$)$

b$.$ The interest payment on June $30,$ Year $2,$ and the amortization of the bond premium, using the interest method $($Round to the nearest dollar.$)$