On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $550,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.

1.If the market interest rate is 8%, the bonds will issue at $502,447. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.

2.If the market interest rate is 6%, the bonds will issue at $603,901. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018.