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Garcia Company issues 11.5%, 15-year bonds with a par value of $360,000 and semiannual interest payments. On the issue date, the annual market rate for

Garcia Company issues 11.5%, 15-year bonds with a par value of $360,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.5%, which implies a selling price of 117 3/4. Prepare the journal entry for the issuance of these bonds for cash on January 1.

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