On January 1, 2014, Sunset Corporation issued $5,000,000, 5%, 5-year bonds dated January 1, 2014, at 97. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end.

Instructions

Prepare all the journal entries that Sunset Corporation would make related to this bond issue through January 1, 2015. Be sure to indicate the date on which the entries would be made.