On 1/1/2015, GLT, INC., issued 5,000,000 face value of 9%, 20-year term bonds. The bonds are callable at 102 at any time after 12/31/2025. The bonds pay intereston 6/30 and 12/31 each year. The bonds were sold to yield 11% (Market rate of interest). Round answers to nearest dollar.
Required:
1. Give the entry to record the sale of the bonds (Use the PV Annuity $1 and PV $1 to calculate selling price).
2. Give the entries to record the interest expense and interest paid for 2015 and 2016.