On August 1, Clayton Co. issued 1,300,000 of 20 year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semi annually on February 1 and August 1. Present the entries to record the following transactions for the current year.
a. Issuance of bonds
b. Accural of interest and amortization of bond discount for the year, on December 31, using the straight-line method.