Two independent situations follow: 

1. On January 1, 2020, Divac Limited issued $300,000 of 10-year, 9% bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 

2. On June 1, 2020, Verbitsky Inc. issued at par, plus accrued interest, $200,000 of 10-year, 12% bonds dated January 1. Interest is payable semi-annually on July 1 and January 1. 

Instructions 

For each of these two independent situations, rounding to the nearest dollar, prepare journal entries to record: 

1. The issuance of the bonds 

2. The payment of interest on July 1