The Windy City Company issued $500,000 of 12% bonds on January 1, 2020. The bonds were sold for $549,493, and they were expected to yield 10% interest compounded semiannually. The interest dates are...

Extracted text: The Windy City Company issued $500,000 of 12% bonds on January 1, 2020. The bonds were sold for $549,493, and they were expected to yield 10% interest compounded semiannually. The interest dates are June 30 and December 31. The maturity date of the bonds is December 31, 2026. Required: a. Prepare the journal entry to record the issuance of the bonds. b. Using the effective interest method, prepare the journal entries to record the first two interest payments.