On January 1 , 2021. Franco Company issued of three - year , 6 % bonds when the issue price was $ 296,546 The bonds pay interest semi - annually on June 30 and December 31. The annual market interest rate at the date of issuance was 10 % . $300,000 Required : ( round all answers to the nearest whole dollar ) Prepare the general journal entries for the . a Issuance of the bonds on January 31 , 2021. ( 2 marks ) b ) Payment of interest on June 30 , 2021 assuming the effective interest method ( 5 marks )