Allied Corp. issued at par 8 percent, five-year bonds payable with a maturity value of $50,000 on May 1, 2018. Assume the fiscal year ends December 31. Journalize the following transactions and include an explanation for each entry. Round calculations to the nearest dollar.

a. Issuance of the bonds payable on May 1, 2018

b. Payment of the first semiannual interest amount on November 1, 2018

c. Accrual of interest expense on December 31, 2018