Houston Clothing Company issued \(\$ 600,000\) of \(12 \%\) serial bonds on July 1, 1998, at face value. The bonds are dated July 1, 1998; call for semiannual interest payments on July 1 and January 1; and mature at the rate of \(\$ 120,000\) per year, with the first maturity date falling on July 1, 2003. The company's accounting period ends on September 30.

Prepare journal entries to record the interest payment of July 1, 2003; the maturing of \(\$ 120,000\) of bonds on July 1, 2003; and the adjusting entry needed on September 30, 2003 . Also, show how the bonds would be presented in the company's balance sheet for September 30,2003 .