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Calculate the issue price of a $1,500,000 bond issue and preparing the journal entries of the issuance and first years interest payments using the effective interest method

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Calculate the issue price of a $1,500,000 bond issue and preparing the journal entries of the issuance and first years interest payments using the effective interest method. The bonds are paid semiannually on Jun 30 and December 31.

The first is a 12 year, 8 percent bond issue with a market interest rate of 12 percent.

The second is a 12 year, 8 percent bond issue with a market interest rate of 6 percent.