On March 1, 2024, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2024, for $99 million (plus accrued interest). The bonds mature on December 31, 2043, and pay interest semiannually on June 30 and December 31. Brown-Ferrings fiscal period is the calendar year.

Required:

Determine the amount of accrued interest that was included in the proceeds received from the bond sale.

Prepare the journal entry for the issuance of the bonds by Brown-Ferring.