On January 1, 2017, Pharoah Ltd. issued £134,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1.
Prepare journal entries to record the following. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2017.
(c) The payment of interest on January 1, 2018.