On January $1,2024,$ for $$18\mathrm{.}5$ million, Cenotaph Company purchased $10\%$ bonds, dated January $1,2024,$ with a face amount of $$20\mathrm{.}5$

million. For bonds of similar risk and maturity, the market yield is $12\%.$ Interest is paid semiannually on June $30$ and December $31.$

Required:

Prepare the journal entry to record interest on June $30,2024,$ using the effective interest method.

Prepare the journal entry to record interest on December $31,2024,$ using the effective interest method.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to record interest on June $30,2024,$ using the effective interest method.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

whole dollars not in millions $($i$.$e$.,1,000,000$ not $1).$