John Company issues $1,000,000 of 9%, 10-year bonds at $937,688.95 on January 1. The effective interest rate is 10%. The bonds pay interest on June 30 and December 31 each year.

Preparre the entries for issuance of the bonds and the first two interest payments using the straight-line method.

Preparre the entries for issuance of the bonds and the first two interest payments using the effective interest rate method.