On January 1, 2018, White Water issues $470,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year.

Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $470,000. Record the journal entries for the following:

1. The bond issue on January 1, 2018,

2. The first annual interest payments on December 31, 2018,

3. and the second annual interest payment on December 31, 2019