Quebec Corporation issued $260,000, 9%, 10-year bonds on January 1, 2001, for $243,799. This price resulted in an effective interest rate of 10% on the bonds. Interest is payable semiannually on July 1 and January 1. Quebec uses the effective-interest method to amortize bond premium or discount. Interest is not accrued on June 30.

Instructions Prepare the journal entries to record (round to the nearest dollar):

(a) The issuance of the bonds.

(b) The payment of interest and the discount amortization on July 1, 2001.

(c) The accrual of interest and the discount amortization on December 31, 2001.