Nolan Company issued $400,000 par value, 5-year, 3% bonds on June 1, 2018 . The bonds are dated January 1, 2018 , and pay interest semiannually each June 30 and December 31. The bonds are sold at par plus accrued interest because they are sold between interest dates. The company's fiscal year ends on December 31. Prepare the journal entries required to issue the bonds on June 1, 2018 , and record the first interest payment on June 30, 2018 .