On January $1,$ Cullumber Company issued $$250,000,5\%,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. $1$

Bonds Payable

$($b$)$

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

Date Account Titles and Explanation

Debit

Credit

Dec. $31$