On August 1, Year 1, Best Company sold Mac Company $1,500,000 of 8-year, 6% bonds, dated July 1 at 100 plus accrued interest. On March 1, Year 2, Mac sold half of the bonds for $782,500 plus accrued interest. Present entries to record the following transactions:

Mac Company: (a) Purchase of bonds on August 1, Year 1.

(b) Receipt of first semiannual interest amount on December 31, Year1.