Sandhill Desalination Ltd. needed to raise $160,000,000 of additional capital to finance the design, development, and construction of its water desalination facility. Sandhill decided to issue bids that pay interest of $2,400,000 on each of March 31 and September 30 and that will reach maturity on September 30, 2037. The bonds were issued at 93.7 on October 1, 2024, for $148,920,000, which represented a yield of 3.61%.

Show the journal entries to record the first two interest payments. Ignore year-end accruals of interest.