On January $1,$ the first day of the fiscal year, Designer Fabric Inc. issues a $$550,000,4\%,10-$year bond that pays

semiannual interest of $$11,000($$$550,0004\%\frac{1}{2}$ year$),$ receiving cash of $$550,000.$

a$.$ Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it

blank.

Cash $-$

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b$.$ Journalize the entry to record the first interest payment on June $30.$ If an amount box does not require an

entry, leave it blank.

Interest Expense $$

Issuing bonds at a discount

On the first day of the fiscal year, a company issues a $$6,000,000,10\%,4-$year bond that pays semiannual

interest of $$300,000($$$6,000,00010\%\frac{1}{2}),$ receiving cash of $$5,627,412.$

Journalize the bond issuance. If an amount box does not require an entry, leave it blank.