On January $1,2021,$ MANGO Corp. issues $$100$ million of convertible bonds at par value. The bonds have a stated annual interest rate of $6\%,$ pay interest semiannually, and come due December $31,2025.$ The bonds are convertible at any time after issuance at the rate of $25$ shares of common stock for each $$1,000$ of the face value of the convertible bonds. Issuance costs total $$500,000.$ The current annual market interest rate for non$-$convertible bonds with similar maturity is $8\%.$

Required:

$1-$ Prepare the journal entries to record the issuance of the convertible bonds $($round to the nearest dollar$).$

$2-$ Determine the amount of expense related to the convertible bonds that the company should recognize each year $($round to the nearest dollar$)$ and prepare the journal entries for the first year only.