On January 1, 2015, White Water issues $200,000 of 7% bonds, due in 10 years, with interest

Question:

On January 1, 2015, White Water issues $200,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year.

Required:
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $200,000. Record the bond issue on January 1, 2015, and the first two interest payments on December 31, 2015, and December 31, 2013.