In the Burbs Ltd. (ITBL) sells $5,000,000 of eight-year, 4% bonds for $5,009,400 plus accrued interest. The bonds are dated January 1, 2018, but due to market conditions are not issued until March 1, 2018. Interest is payable on June 30 and December 31 each year. ITBL elects to report its financial results in accordance with ASPE and employs the straight-line method to amortize the bond premium.

Required:

Prepare journal entries to record:
a. The issuance of the bonds on March 1, 2018. Assume that ITBL has adopted a policy of crediting accrued interest payable for the accrued interest on the date of sale.
b. Payment of interest on June 30, 2018.
c. Payment of interest on December 31, 2018.