NOTES SOLD AFTER THE BEGINNING OF AN INTEREST PERIOD. Zangas Fashions sold $1,000,000 of 7.8%, 10-year notes on March 1, 19x6, 2 months after the interest period began. The interest payments are to be made June 30 and December 31 of each year. Zangas received $1,008,280, including $13,000 of interest for January and February, when the notes were sold.

REQUIRED:

1. Prepare the entry to recognize the sale of the notes on March 1, 19x6.

2. Prepare the entry to recognize the interest expense and payment on June 30, 19x6.

8. Prepare the entry to recognize the interest expense and payment on December 31, 19x6.