On January 1, Forrester Company issued $278,000, 6%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

A. Prepare the journal entry to record the issuance of the bonds.

B.Prepare the journal entry to record the payment of interest on July 1, assuming no previous accrual of interest.

C.Prepare the journal entry to record the accrual of interest on December 31.