On January 1, 2019, Rufus Company issued $4,000,000 par value, 4%, bonds that mature on December 31, 2029. The bonds were issued at 102 to yield a return of 3% to investors. Interest on the bonds is paid annually on December 31 each year.

1. Please prepare the entry to record the issuance of the bonds on January 1, 2019.
2. Prepare the entry to record the payment of interest on the bonds on December 31, 2019.

(SHOW ALL WORK)