Pharoah Corporation issued $3.6 million of 5-year, 11% bonds dated January 1, 2021, at 100. Interest is payable semi-annually on January 1 and July 1. Pharoah has a December 31 year end.

Prepare the journal entry to record the sale of these bonds on January 1, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Jan. 1
	(To record issuance of bonds.)

Prepare the adjusting journal entry on December 31, 2021, to accrue the interest expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31
	(To accrue interest expense.)