Jessica Alba Company issued bonds on January 1, 2021. Interest is payable semiannually on July 1 and January 1. Alba's Company uses the effective interest method of amortization for bond premium or discount. Pertinent information follows:

Par value of Bonds $1,000,000

Stated interest rate 6%

Term 20 years

Issue price 105

Effective interest rate 4.8750%

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 related amortization on July 1, 2021.

c) The accrual of interest and the related amortization on December 31, 2021.