E$11\mathrm{.}2($LO $2)$ On January $1,2025,$ Klosterman Ltd$.$ issued $500,000,10\%,10-$year bonds at face value. Interest is payable annually on January $1.$

Instructions

Prepare journal entries to record the following.

a$.$ The issuance of the bonds.

b$.$ The accrual of interest on December $31,2025.$ c$.$ The payment of interest on January $1,2026.$

Prepare entries for bonds issued at face value.