Can you please help me with this question? I need help on understanding the formulas on this portion of the question as well. Thanks.

Flounder Corporation sold $3,490,000,7%,5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Flounder Corporation uses the straight-line method to amortize bond premium or discount.

Prepare journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at98.