Problem #$2(4$ points$)$

On January $1,2023,$ Foles Products issued $12\%$ bonds with a face amount of $$600,000,$

dated January $1.$ The bonds mature in $2042(20$ years$).$ The effective rate of interest is

$10\%.$ The present value of the bonds is $$575,000.$ Interest is paid semi$-$annually.

Also

On January $1,2023,$ Foles Products issued $12\%$ bonds with a face amount of $$400,000,$

dated January $1.$ The bonds mature in $2042(20$ years$).$ The effective rate of interest is

$14\%.$ The present value of the bonds is $$417,000.$ Interest is paid semi$-$annually.

Required:

A$.$ Prepare the journal entries for the issuance of the bonds by Foles for both scenarios $1)$

and $2)$ above. Well$-$organized $T$ accounts are acceptable.