Presented below are two independent situations. 1. On January 1, 2019, Divac SA issued 300,000 of 9%,

Question:

Presented below are two independent situations.
1. On January 1, 2019, Divac SA issued €300,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1.
2. On June 1, 2019, Verbitsky AG issued €200,000 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.
a. The issuance of the bonds.
b. The payment of interest on July 1.
c. The accrual of interest on December 31.