On January 1, 2022, Sandhill Company issued $485,000, 13%, 10-year bonds at face value. Interest is payable annually on January 1.

(a)

Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2022	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2022	enter a debit amount	enter a credit amount

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(b)

Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2022	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on December 31, 2022	enter a debit amount	enter a credit amount

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(c)

Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1, 2023	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount
	enter an account title for the journal entry on January 1, 2023	enter a debit amount	enter a credit amount