Vanguard Corporation issued $6,000,000 of 12% bonds on January 1, 2023, due on January 1, 2037. The interest is to be paid twice a year on January 1 and July 1. The bonds were sold to yield 7% effective annual interest. Grove Corporation closes its books annually on December 31.
	Present value of 1 for 28 periods at 3.5%		0.38165
	Present value of 1 for 28 periods at 6%		0.19563
	Present value of an ordinary annuity for 28 periods at 3.5%		17.66702
	Present value of an ordinary annuity for 28 periods at 6%		13.40616
Instructions
(a) Calculate the issuing price of the bonds (show your work).
(b) Prepare the journal entries for the second year (January 1, 2024 - January 1, 2025) using the effective-interest method.
(c) Compute the interest expense to be reported in the income statement for the year ended, December 31, 2024