On July 1, 2019 a company issued 5-year, 5% bonds payable with a par value of $1,000,000, and received $885,294, in cash proceeds. The market rate of interest at the date of issuance was 6%. The bonds pay interest semiannually on June 30 and December 31. The issuer uses the straight-line method for amortization. Prepare the issuer's journal entry to record the first and second semiannual interest payment on December 31, 2017 and June 30, 2018,

7. On July 1, 2019 a company issued 5-year, 5% bonds payable with a par value of $1,000,000, and received $885,294, in cash proceeds. The market rate of interest at the date of issuance was 6%. The bonds pay interest semiannually on June 30 and December 31. The issuer uses the straight-line method for amortization. Prepare the issuer's journal entry to record the first and second semiannual interest payment on December 31, 2017 and June 30, 2018