XYZ Corporation had the following transactions during the year 2022:

1. On January 1, 2022, the company issued $500,000 of 10-year, 8% bonds at par. Interest is payable semi-annually on June 30 and December 31.

2. On June 30, 2022, the company paid the first semi-annual interest payment on the bonds.

3. On December 31, 2022, the company accrued the second semi-annual interest payment on the bonds.

Calculate the total interest expense for the year 2022 and prepare the journal entries to record the above transactions.

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