On January 1, 2018, Paxton, Inc. issued $10,000,000 of 5%, 15 year bonds. The bonds pay interest semi-annually on June 30 and December 31. At the time the bonds were issued, the market rate was 4%.

A. Calculate the cash received by Paxton, Inc. on January 1, 2018.

B. Prepare the necessary journal entries on January 1, June 30 & December 31, 2018.

C. Neatly show how the bonds would appear on Paxton, Inc's December 31, 2019 balance sheet.