Answer:
The cash received from bond issuance is journalized as follows:
Dr Cash                                $285,600
Cr  Bonds payable                                  $280,000
Cr Premium on Bonds payable                   $5,600
The June 30 and 31 December Year 1 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840                                          
Dr Premium on bonds           $560
Cr Cash                                         $8400
31 December
Dr Interest expense(bal fig) $7,840                                          
Dr Premium on bonds           $560
Cr Cash                                         $8400
The June 30 and 31 December Year 2 interest on the bonds are recorded thus:
30 June
Dr Interest expense(bal fig) $7,840                                          
Dr Premium on bonds           $560
Cr Cash                                             $8400
31 December
Dr Interest expense(bal fig) $7,840                                          
Dr Premium on bonds           $560
Cr Cash                                            $8400
Explanation:
The amount realized from the bond is calculated thus:
$280,000*102%=$285,600
Premium on  bond=Bonds proceeds-par value
                                 =$285,600-$280,000
                                 =$5,600
Semi-annual amortization of bond premium=$5,600/5*6/12
                                                                          =$560
Semi-annual interest payment=$280,000*6%*6/12
                                                  =$8,400