Needing help journalizing the following:

On January 1, 2018, Piney issued $125,000, 4.5%, 8 year bonds when the market rate was 5%.

Interest is to be paid annually on each January 1, beginning 1 year from date of issue.

The first cash interest payment on the 4.5% bonds is due January 1, 2019. The annual

interest on the bonds for 2018 has not been recorded.

Piney uses the effective interest method.