Garcia Company issues $10\mathrm{.}5\%,15-$year bonds with a par value of $$250,000$ and semiannual interest payments. On the issue date, the annual market rate for these bonds is $8\mathrm{.}5\%,$ which implies a selling price of $1163/4.$

Prepare the journal entry for the issuance of these bonds for cash on January $1.$