E$13\mathrm{.}4$: Celine Dion Company issued $$600,000$ of $10\%,20-$year bonds on January $1,2025,$ at $102.$ Interest is payable semiannually on July $1$ and January $1.$ Dion Company uses the straight$-$line method of amortization for bond premium or discount.

Instructions:

Prepare the journal entries to record the following.

The issuance of the bonds.

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

The accrual of interest and the related amortization on December $31,2025.$

E$13\mathrm{.}5$: Assume the same information as in E$13\mathrm{.}4,$ except that Celine Dion Company uses the effective$-$interest method of amortization for bond premium or discount. Assume an effective yield of $9\mathrm{.}7705\%.$

Instructions:

Prepare the journal entries to record the following. $($Round to the nearest dollar.$)$

The issuance of the bonds.

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

The accrual of interest and the related amortization on December $31,2025.$