On September 1, 19X1, Simons Company sold and issued to Trammel Company $60,000, 5-year, 9% coupon annual interest rate (payable semiannually) bonds for a price that would yield the market annual rate of interest of 8%. The bonds were dated July 1, 19X1, and interest is payable each June 30 and December 31. The accounting period for Simons ends on December 31.

Required:

Calculate the cash price at September 1,and record the journal entries for issuance and for the first 2 interest periods.