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On August 1, 2017, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Martinezs year-end is December

On August 1, 2017, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is payable annually on August 1. Martinezs year-end is December 31.

1. Prepare journal entry to record the issuance of the bonds.

2. Prepare journal entry to record the accrual of interest on December 31, 2017.

3. Prepare journal entry to record the payment of interest on August 1, 2018.

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