P15-2A The board of directors of Galaxy Production Company authorizes the issue of $8 million of 7%, ten-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on June 30, 20X5, at par plus accrued interest. Required 1. Journalize the following transactions:

a. Issuance of the bonds on June 30, 20X5.

b. Payment of interest on November 30, 20X5.

c. Accrual of interest on December 31, 20X5.

d. Payment of interest on May 31, 20X6. 2. Check your recorded interest expense for 20X5, using as a model the supplement to the summary problem on page 588. 3. Report interest payable and bonds payable as they would appear on the Galaxy balance sheet at December 31, 20X5.