Celine Dion Company issued $600,000 of 10%, 20-year bonds on Juanuary 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Dion Company uses the effective-interest method of amortization for bond premium or discount. Effective yield of 9.7705%

Instructions: Prepare the journal entries to record the following (round to the nearest dollar)

a). The issuance of the bonds

b) The payment of interest and the related amortization on July 1, 2017

c) The accrual of interest and the related amortization on December 31, 2017