Answer
Step1:
Jan. 01 Cash 300,000 dollars
Bonds Payable 300,000 dollars
Step2:
Dec. 31 Bond Interest Expense 21,000 dollars
Bonds Interest Payable 21,000 dollars
Step3:
Jan. 01 Bonds Interest payable 21,000 dollars
Cash 21,000 dollars
Work Step by Step
Step1:
To record sale of bonds at face value
Step2:
To accrue bond interest for the period January -December
Step3:
To record payment of bond interest for the year ended December