On January 1, the first day of the fiscal year, a company issues a $300,000, 9%, 10-year bond that pays semiannual interest of $13,500 ($300,000 x 9% x year), receiving cash of $300,000.

Required:

Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31.

December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every lint page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered