Deleau Equipment Ltd. issued 10%, five-year bonds with a face value of $81,750,000 on October 1, 2016. The bonds were issued at par and pay interest on March 31 and September 30 each year. Deleaus year end is December 31.

(a)

Prepare the journal entry for the issuance of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

(b)

Prepare the journal entry required at December 31, 2016, and the entries for the interest payments on March 31 and September 30, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date Account Titles and Explanation Debit Credit Oct. 1 Date Account Titles and Explanation Debit Credit Dec. 31, 2016 Mar. 31, 2017 Sept. 30, 2017