Journalize the following transactions of Fayuz Communications Inc.:

2014 Jan. 2 Issued $8,000,000 of 7-percent, 10-year bonds payable at 97.00.

2 Signed a five-year capital lease on machinery. The agreement requires annual lease payments of $80,000, with the first payment due immediately. The present value of the five lease payments is $333,589 using a market rate of 10 percent.

Jul. 2 Paid semiannual interest and amortized the discount by the straight-line method on the 7-percent bonds payable.

Dec. 31 Accrued semiannual interest expense and amortized the discount by the straight-line method on the 7-percent bonds.

31 Recorded amortization on the leased machinery, using the straight-line method.

31 Accrued interest expense at 10 percent on the lease liability.

2024 Jan. 2 Paid the 7-percent bonds at maturity. (Ignore the final interest payment.)