Shangri-La Inc. reports its financial results in accordance with ASPE and employs the straight-line method of amortization. The company issues $5,000,000 of five-year, 4% bonds dated January 1, 2018. Interest is payable on January 1 and July 1 each year. The proceeds realized from the issue were the $4,900,000 sales price less the $50,000 fee charged by Shangri-La’s investment bank. Shangri-La’s year-end is December 31.

Required:
Prepare journal entries to record:
a. The issuance of the bonds.
b. Payment of interest and related amortization on July 1, 2018.
c. Accrual of interest and related amortization on December 31, 2018.