On January 1, 2019, Cinderella Corp. issued a 5 year, 7%, $500,000 bond for 95. The bond will pay interest semi-annually (July 1^st and January 1^st). The market rate is 8%. The company uses the effective interest rate method.

Required

Prepare the necessary journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31. Explanations are not required. Do not combine the entries do each one separately (Hint 3 entries). Show in format below:

DATE ACCOUNT DEBIT CREDIT