Assiniboine Inc. issued a five-year, $4,000,000 bond on January 2, 2021. The bond pays interest of 10% and the market rate was 8.5% on the date of issuance; it was sold at $4,227,447. Interest is paid annually, and calculated using the effective interest rate method.

Required

1. a) Record the issuance of the bond on January 2, 2021.

1. b) Assiniboine year end is June 30, 2021. Record the accrual of interest as of year-end.

1. c) Record the annual interest payment on January 2, 2022.

ROUND TO THE NEAREST DOLLAR