Journalize the following transactions of Sequoia Forest Products, Inc.:

\section*{\(19 \mathrm{X} 1\)}

Jan. 1 Issued \(\$ 500,000\) of 8 -percent, 10 -year bonds payable at 97 .

1 Signed a 5-year capital lease on equipment. The agreement requires annual lease payments of \(\$ 20,000\), with the first payment due immediately. At 12 percent, the present value of the four future lease payments is \(\$ 60,750\).

July 1 Paid semiannual interest and amortized discount by the straight-line method on our 8percent bonds payable.

Dec. 31 Accrued semiannual interest expense, and amortized discount by the straight-line method on our 8-percent bonds payable.

31 Recorded depreciation on leased equipment.

31 Accrued interest expense on the lease liability.

\(19 \mathrm{X} 11\)

Jan. 1 Paid the 8 -percent bonds at maturity.