Example 2 To finance construction of new corporate headquarters, Wilson Company issued $5,000,000 of 8%,20-year bonds on January 1 , 2022 . The bonds pay interest semiannually on each December 31 . The bonds yield 10%. Required: A. Prepare the journal entry to record the issuance of the bond on January 1, 2022. B. Prepare the journal entry to record interest at December 31, 2022 using the effective interest method. Example 2 To finance construction of new corporate headquarters, Wilson Company issued $5,000,000 of 8%,20-year bonds on January 1 , 2022 . The bonds pay interest semiannually on each December 31 . The bonds yield 10%. Required: A. Prepare the journal entry to record the issuance of the bond on January 1, 2022. B. Prepare the journal entry to record interest at December 31, 2022 using the effective interest method