On January $1,2022,$ WC Issued $$1,000,000$ of $10-$year bonds with a $12\%$ stated interest rate and interest payable on July $1$ and January $1.$ The bonds were sold to yield $14\%.$ WC uses the net method to account for bonds.

Required:

Prepare the journal entry to record the issuance of the bonds. $(4$ marks$)$

If WC uses a straight$-$line method to amortize the discount$/$premium$,$ prepare the journal entry$($ies$)$ to record interest expense for the six months ended June $30,2022.(5$ marks$)$

If WC uses an effective interest method to amortize the discount$/$premium$,$ compute how much interest expense should be reported for the year ended December $31,2022.$ Show your work. $(3$ marks$)$