Travel In Style Limited issued $1,000,000 of 9% bonds on September 1, 2023, for $1,058,671. The term of the bonds is September 1, 2023, to September 1, 2031, with interest payable quarterly each December 1, March 1, June 1, and September 1. The company uses the effective interest method with an effective rate of 8%.

(a) Prepare the company’s journal entry for the September 1 issuance.

(b) Prepare the company’s journal entry for the December 1 interest payment.