Summatra Corporation issued $$1,200,000$ of five year $8\%$ term bonds on January $1,2012$ with interest payable twice annually $($each July $1$ and January $1).$ The market rate of interest for such bonds is $6\%.$

a$]$ Calculate the bond proceeds $($i$.$e$.$ present value of the bonds$)$

b$]$ Record the journal entry on Summatra$$s for issuance of the bonds:

c$]$ Record the journal on Summatra$$s books for accrual of interest on June $30$th