Answer
a)
2010 Jan.1 -
Cash - 2,000,000 dollars (Debit)
Bonds Payable - 2,000,000 dollars (Credit)
b)
Dec.31 -
Bonds interest expense - 140,000 dollars (Debit)
Bonds interest payable - 140,000 dollars (Credit)
c)
2011 Jan.1 -
Bonds interest payable - 140,000 dollars (Debit)
Cash - 1400,00 dollars (Credit)
Work Step by Step
a) To record sale of bonds at face value
b) To accrue bond interest
c) To record payment of bond interest