Starbucks issued 5-year, 6%, $200,000 bonds on Jan 1, 2019. The bond pays interest every June 30 and December 31, with the principal to be paid in 5 years. The market rate at the time of issuance is 8%, and the company uses the effective-interest method of amortization. Show Work

A) Compute the initial selling price of the bonds on Jan 1, 2019; show calculations

B) Provide the journal entry for the 2nd interest payment