Ultra Shea Corporation issued 10-year, 9% bonds with a face value of $500,000 on February 1 for $468,000. The bonds are dated January 1, 2018. Interest is paid semiannually on July 31 and January 31. The company uses the straight-line method of amortization.

1. Prepare the December 31st adjusting entry for the accrual of interest.

You MUST show all calculations. Round to the nearest whole dollar. Do not forget journal entry descriptions.