Lee Jeans has successfully designed some new jeans. To produce and market the clothing line, the company needs additional financing. On March 1, 2020, Lee issued $1,000,000, 10%, 10-year bonds at face value. Interest is payable every March 1 and September 1.

Instructions:

1. Journalize the issuance of the bonds on March 1, 2020.

2. Prepare journal entries for payment and/or accrual of interest expense in 2020 and 2021.