Problem Two

On December $31,2015,$ Olde West Corp issued $$2,000,000,10\%,5-$year bonds. Interest is payable semiannually on June $30$ and December $31.$ Using the present value tables, $(1)$ determine the issue price of the bonds and $(2)$ show the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was:

a$)8\%$

b$)10\%$

c$)12\%$