Flexsteel Industries manufactures furniture for the retail, contract, and recreational vehicle furniture markets. On January $1,2021,$

Flexsteel Industries issued $12\%$ bonds dated January $1,2021,$ with a face amount of $$20$ million. The bonds mature in $2030(10$ years$).$

For bonds of similar risk and maturity, the market yield is $10\%.$ Interest is paid semiannually on June $30$ and December $31.($FV of $$1,$ PV

of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Determine the price of the bonds at January $1,2021.$

Prepare the journal entry to record the bond issuance by Flexsteel on January $1,2021.$

Prepare the journal entry to record interest on June $30,2021,$ using the effective interest method.

Prepare the journal entry to record interest on December $31,2021,$ using the effective interest method.