PowerTap Utilities is planning to issue bonds with a face value of $1,000,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Prepare all journal entries under this bond arrangement for the first year for both cases: (1) total issue price of the bonds is $885,301; (2) total issue price of the bonds is $1,135,903. In the journal entries, put bond discounts and premia in separate accounts.