Issuing bonds at face amount. The first day of the fiscal year, a company issues a $3,500,000, 5%, 10 year bond that pays semiannual interest of $87,500 ($3,500,000 * 5% * 1/2 year), receiving cash of $3,500,000. Journalize the entries to record (a)the issuance of the bonds, (b) the first interest payment, and (c) the payment of the principal on the maturity date.