Celine Dion Company issued bonds on January $1,2025.$ Interest is payable semiannually on July $1$ and January $1.$ Dion Company uses the effective interest method of amortization for bond premium or discount. Pertinent information follows:

Par value of bonds $$600,000$

Stated interest rate $10\%$

Term $20$ years

Issue price $102$

Effective Interest rate $9\mathrm{.}7705\%$

Instructions

Prepare the journal entries to record the following.

a$.$ The issuance of the bonds.

b$.$ The payment of interest and related amortization on July $1,2025.$

c$.$ The accrual of interest and the related amortization on December $31,2025.$Please give explanations to answers.