On January $1,2023,$ Kristopher Co$.$ issued ten$-$year bonds with a face value of $$7,000,000$ and a stated interest rate of $5\%,$ payable semiannually on June $30$ and December $31.$ The bonds were sold to yield $4\%.$

Required:

a$.$ Calculate the issue price of the bonds.

b$.$ Prepare journal entries for the issuance on January $1,2023$ and the June $30,2023$ interest payment date, assuming the company uses the effective interest method for amortizing any premium or discount.