Exam $3$ Modules $9$ and $10$

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On January $1,$ a company issues bonds dated January $1$ with a par value of $$430,000.$ The bonds mature in $5$ years. The contract rate is $7\%,$ and interest is paid semiannually on June $30$ and December $31.$ The market rate is $8\%$ and the bonds are sold for $$412,577.$ The journal entry to record the issuance of the bond is: