On July $1,20$Y$1,$ Danzer Industries Inc. issued $$35,400,000$ of $10-$year, $10\%$ bonds at a market $($effective$)$ interest rate of $12\%,$ receiving cash of $$31,339,478.$ Interest on the bonds is payable semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.

Required:

$1.$ Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,20$Y$1.$

$2.$ Journalize the entries to record the following:

a$.$ The first semiannual interest payment on December $31,20$Y$1,$ and the amortization of the bond discount, using the straight$-$line method.

b$.$ The interest payment on June $30,20$Y$2,$ and the amortization of the bond discount, using the straight$-$line method.

$3.$ Determine the total interest expense for $20$Y$1.$

$4.$ Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

$5.$ Compute the price of $$31,339,478$ received for the bonds by using the present value tables.