Knowledge Check

Marsh Corporation issued $1,0005\%,5-$year, $$1,000$ bonds dated January $1,2025,$ at face value. Interest is paid each January $1.$ Prepare the journal entries to record the issuance of the bonds, the accrual of interest on December $31,2025,$ and the payment of interest on January $1,2026.($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

$($To record sale of bonds at face value$)$

$($To accrue bond interest$)$

$($To record payment of bond interest$)$