Balance sheet as of December 31, 2019.

Assets

Cash

$11,500,000

Land

$500,000

Equity

Common Stock

$400,000

Paid In Capital C.S

$11,600,000

The Law Firm is pretty solid in the cash area but wants to make sure that they have a good stash of cash to market the business effectively.They decide to issue bonds in increments of $10,000 dollars and they will issue 300 of them.The stated interest rate will be 12% and the interest will be paid annually.The bonds will have a 4 year life and the current market interest rate is 8%.Please assume all bonds were sold as one (make one journal entry), on January 1, 2020.First payment of interest will be on December 31, 2020.Assume the company uses the effect interest rate method.

My Professor wants me to create a journal entry for this question