Hillside issues $1,100,000 of 9%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,346,395. Record the issue of bonds with a par value of $1,100,000 on January 1, 2021 at an issue price of $1,346,395.

Prepare the January 1 journal entry to record the bonds issuance.