On January 1, 2018, Plains, Inc. issues $2,700,000 in 10-year bonds that pay 7% while bonds of similar risk and maturity are paying 8%. They pay interest semi-annually on June 30th and December 31st. They use the effective interest method to calculate interest expense

Requirement 1: - Provide the number of compounding periods for the bonus

- Provide the interest rate per compounding period

- Period the cash interest paid for one interest payment

- Provide the total cash received at issuance for the bonds

Requirement 2: Please prepare the journal entry to record the issuance of the bonds on January 1. 2018 by Plains, INC

Requirement 3: Prepare the journal entry to record the interest payment on June 30, 2018 by Plains, INC