On January $1,$ Year $1,$ ABC Inc. issued bonds with following terms:

$\backslash$table$[[$Face value,$$820,000],[$Maturity date $($the life of the bond is $5$ years$),$Dec. $31,$ Year $5],[\backslash$table$[[$Number of interest payments each year $($on June $30],[$and December $31)]],2],[$Stated annual interest rate,$5\%],[\backslash$table$[[$At the time of issuance, the effective annual interest$],[$rate for similar bonds$]],7\%]]$

Part $1$: Calculate the amount ABC would receive for the bonds on January $1,$ Year $1.$ Round your answer to $2$ decimal places.

Part $2$: Prepare the journal entry to record issuance of the bonds.

Account Titles Debits Credits

Part $3$: Fill in the following table for Year $1$ for the bond. $($Place your answer on the pages provided.$)$ Round all figures to $2$ decimal places.

Period Beginning Bonds Payable Interest Expense Beginning bonds payable $+$ Interest expense Interest paid Ending Bonds Payable

Jan $1-$ June $30,$ Year $1$

July $1-$ Dec $31,$ Year $1$

Part $4$: Prepare one journal entry to record interest expense and interest paid on June $30,$ Year $1.$

Account Titles Debits Credits