On July $1,20$Y$1,$ Danzer Industries Inc. issued $$50,000,000$ of $10-$year, $8\%$ bonds at a market $($effective$)$ interest rate of $10\%,$ receiving cash of $$43,768,920.$ 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. $($Round to the nearest dollar.$)$

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

$3.$ 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 $$43,768,920$ received for the bonds by using the present value tables. $($Round to the nearest dollar.$)$

$*$Refer to the Chart of Accounts for exact wording of account titles.