On March 1, 2018, American Trumpet, Inc. issued $4,000,000 of 8%, 10 year bonds with interest payable semi-annually on March 1 and September 1, commencing on September 1, 2018. At the time of the issuance, the market interest rate for similar debt instruments is 6%. Required:

1. Prepare the journal entry American Trumpet, Inc. would make when the bonds were issued on March 1, 2018.

2. Prepare the journal entry American Trumpet, Inc. would make on September 1, 2022 to pay the semi-annual interest on that date.