Bond discount, entries for bonds payable transactions

On July $1,20$Y$1,$ Livingston Equipment Co$.,$ a wholesaler of manufacturing equipment, issued $$8,500,000$ of $5-$year, $9\%$ bonds at a market $($effective$)$ interest rate of $10\%,$ receiving cash of $$8,171,797.$ Interest on the bonds is payable semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.