On febraury 1, 2015, cheng ltd. issued $50 million in bonds with a contract rate of 6%. The bonds have a six-year term and pay interest semi-annually on July 31st and January 31st.

a. The bonds were issued at 108.675 to yields 7.5%.

b. The bonds were issued at 78.143 to yield 8.9%.

prepare the journal entries to record the issuance of the bond and the first two semi-annually interest payments. Also determine the carrying amount of the bonds at January 31, 2020.