P$-$F:$12$AB$-38$A$.$ Determining the present value of bonds payable and journalizing using the effective$-$interest amortization method $($Learning Objectives $7,8$ Appendixes $12$A$,12$B$)$

Jack Allen, Inc. is authorized to issue $14\%,10-$year bonds payable. On January $1,2025,$ when the market interest rate is $16\%,$ the company issues $$500,000$ of the bonds. The bonds pay interest semiannually.

$12-49$

Requirements

$3.$ Jan. $1,2025,$ Cash $$451,130$

How much cash did the company receive upon issuance of the bonds payable? $($Round to the nearest dollar.$)$

Prepare an amortization table for the bonds using the effective$-$interest method, through the first two interest payments. $($Round to the nearest dollar.$)$

Journalize the issuance of the bonds on January $1,2025,$ and the first and second payments of the semiannual interest amount and amortization of the bonds on June $30,2025,$ and December $31,2025.$ Explanations are not required.