NOTES SOLD AFTER THE BEGINNING OF AN INTEREST PERIOD. Beckford Markets, a grocery chain, sold a 5-year, $900,000, 8% note issue on February 1, 19x2, 1 month after the interest period began. The interest payments are to be made June 30 and December 31 of each year. Beckford received $900,100, including $6,000 of interest for January, when the notes were sold.

REQUIRED:

1. Prepare the journal entry to recognize the sale of the notes on February 1, 19x2.

2. Prepare the journal entry to recognize the interest expense and payment on June 30, 19x2.

3. Prepare the journal entry to recognize the interest expense and payment on December 31, 19x2.