Block Company issued a $20,000, 10-year Bond on 7/1/2008, when the Market Interest Rate was 6.5%. Assume that the accounting year of Block Company ends on December 31. Journalize the following transactions.
a. Issuance of the Bond on 7/1/2008
b. Accrual of the Interest Expense on 12/31/2008
c. Payment of Interest on 1/1/2009
d. Payment of the Bond at Maturity