Park Corporation is planning to issue bonds with a face value of $2,800,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 6.0 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.)

Required:

1. Prepare the journal entry to record the issuance of the bonds: Issuances of the Bond on Jan. 01

2. Prepare the journal entry to record the interest payment on June 30, using effective-interest amortization.

3. How will Park present its bonds on its June 30 balance sheet? (Round your final answer to whole dollars.)