Mellilo Corporation issued $$5$ million of $20-$year, $9\mathrm{.}5$ percent bonds on July $1,2021,$ at $98.$ Interest is due on June $30$ and December $31$

of each year, and all of the bonds in the issue mature on June $30,2041.$ Mellilo's fiscal year ends on December $31.$ Prepare the

following journal entries.

a$.$ July $1,2021,$ to record the issuance of the bonds.

b$.$ December $31,2021,$ to pay interest and amortize the bond discount.

c$.$ June $30,2041,$ to pay interest, amortize the bond discount, and retire the bonds at maturity $($make two separate entries$).$

d$.$ What is the effect of amortizing the bond discount upon $(1)$ annual net income and $(2)$ annual net cash flow from operating activities.

$($Ignore possible income tax effects.$)$

$($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

dollars not in millions.$)$

Complete this question by entering your answers in the tabs below.

Req A to C

a$.$ July $1,2021,$ to record the issuance of the bonds.

b$.$ December $31,2021,$ to pay interest and amortize the bond discount.

c$.$ June $30,2041,$ to pay interest, amortize the bond discount, and retire the bonds at maturity $($make two separate entries$).$

Journal entry worksheet

Record the issuance of bonds.

Note: Enter debits before credits.