On July 1, 2021, Crane Corp. issued $4,080,000 of 10-year, 5% bonds at $4,413,569. This price resulted in a 4% market interest rate on the bonds. The bonds pay semi-annual interest on July 1 and January 1, and Crane has a December 31 year end.

Record the accrual of interest at December 31, 2021, and the subsequent payment on January 1, 2022.

Assuming instead that Crane has an August 31 year end, prepare the adjusting entry related to these bonds on August 31, 2021, as well as the subsequent interest payment on January 1, 2022.