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On January 1, 2020, C&C Company issued 8% bonds dated January 1, 2020, with a face amount of $10 million. The bonds mature in 2029

On January 1, 2020, C&C Company issued 8% bonds dated January 1, 2020, with a face amount of $10 million. The bonds mature in 2029 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.

1. Determine the price of the bonds on January 1, 2020.

2. Prepare the journal entry to record the bond issuance by C&C on January 1, 2020.

3. Prepare the journal entry to record interest on June 30, 2020, using the effective interest method

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