Fox Corporation issued 10-year, 10%, $1,000,000 bonds on January 1, 2020. The bonds pay interest every June 30 and December 31. The bonds were issued for $1,065,000. Fox Corporation uses straight-line amortization for any discount or premium amortization.

1. Prepare the journal entry to record the sale of these bonds on January 1, 2020.
2. Make the first interest payment and amortize the premium or discount.