Presented below are two independent situations.

On January $1,2025,$ Simon Company issued $$200,000$ of $9\%,10-$year bonds at par. Interest is payable quarterly on April $1,$ July $1,$ October $1,$ and January $1.$

On June $1,2025,$ Garfunkel Company issued $$100,000$ of $12\%,10-$year bonds dated January $1$ at par plus accrued interest. Interest is payable semiannually on July $1$ and January $1.$

Instructions:

For each of these two independent situations, prepare journal entries to record the following.

The issuance of the bonds.

The payment of interest on July $1.$

The accrual of interest on December $31.$