On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds have a coupon interest rate of 5%, payable each July 1 and January 1.

(a) Prepare the journal entry for the issue, assuming the bonds are issued at 98.5.

(b) Prepare the journal entry for the issue, assuming the bonds are issued at 104.5.