On January 1, 2017, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1.
Prepare journal entries to record the following.
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2017.
(c) The payment of interest on January 1, 2018.