Agga Corporation issued $4, 000, ()()() in 10.5 percent, ten-year bonds on February 1, 20x1, at 104. The semiannual interest payment dates are February 1 and August 1.

Prepare entries in journal form for the issue of bonds by Agga on February 1 , 20x 1 , and the first two interest payments on August 1, 20x1, and February 1, 20x2. Use the straight-line method and ignore year-end accruals. E-1