On March 1 2018, Riley issued 1,400,000 of 8% bonds to yield an effective market rate of 7%, the bond matures in 10 years (march 1 2028) with interest paid semiannually each Feb 28 and august 31. Sigma has a 12/31-year end on March 1, 2023, the company called all the bonds prior to maturity at a price of 101%. On the call date the market rate for similar bonds was 6%

1. Prepare the journal entry riley would record when the bonds are issued on March 1 2018
2. Prepare the journal entry that riley would make on dec 31^st 2018 to accrue interest on the bonds (if any other journal entries are required in 2018 you can provide them- you can assume they were recorded appropriately
3. On March 1, 2023 when the bonds are called, what journal entry should riley record.