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Garcia Company issues 9.5%, 15-year bonds with a par value of $320,000 and semiannual interest payments. On the issue date, the annual market rate for

Garcia Company issues 9.5%, 15-year bonds with a par value of $320,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.5%, which implies a selling price of 113 3/4. Prepare the journal entry for the issuance of these bonds for cash on January 1.

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