ML Corporation sold $24,000,000, 8%, 10-year bonds on January 1, 2020. The bonds apply interest on July 1 and January 1. Mc Lain uses the straight-line method to amortize bond premium or discount. Assume no interest accrued on June 30.

Instruction:

a.) Prepare a the necessary journal entries to record the issuance of the bonds and bond interest happens for 2020, assuming that the bonds sold at 105.

b.) Prepare journal entries as in part (1) assuming that the bond sold at 98.

c.) Show statement of financial position presentation for each bond issued at December 31, 2020