On January 1, 2019, Northern Air, issued $1,000,000 face value, 5-year bonds with a coupon rate of 5% at an effective rate of 4% which sold at 105. Interest is paid semi-annually on July 1 and December 31. Northern Air uses the effective-interest method of amortization. Northern Air has a December 31 year-end. Prepare the journal entry for the initial sale of the bond and the first two interest payments.