On July 1, 2012, Nicholsen Corporation issued $300,000 of bonds, with a 13% stated rate of interest, for $318,000. The bonds pay interest semiannually on each January 1 and July 1 and are to be repaid in three equal semiannual installments beginning July 1, 2014. Assume Nicholsen's fiscal year ends May 31 and it makes reversing entries for year-end accruals.

Required:

Prepare the journal entries to account for this serial bond issue on each of the following dates using the bonds outstanding method of amortization:

1. July 1, 2012

2. January 1, 2013

3. July 1, 2013

4. January 1, 2014

5. July 1, 2014

6. January 1, 2015

7. July 1, 2015