Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 . Prepare the journal entry for the issuance of these bonds for cash on January 1.

• Record the issue of bonds with a par value of $240,000 at a selling price of 117 .

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01	Cash	281,400
	Bond interest expense		12,000
	Bonds payable		240,000