Assume WPPSS issued the ten-year bond in Exhibit 15-1 at a price of 86 on July 1. 2000. Also assume that WPPSS's fiscal year ends on June 30. Journalize the following trans- actions for WPPSS. Include an explanation for each entry.

a. Issuance of the bond payable on July 1, 2000.

b. Payment of interest and amortization of bond discount on January 1. 2001. (Use the straight-line method to amortize the discount. Round interest to the nearest dollar.)