Joes Corporation sold its $272,000, 9.50 percent bonds for $330,653 on January 1, 2020. The bondholders could make 6.50 percent for a similar investment in the market. The bonds mature on December 31, 2029 and will pay cash interest annually every December 31. Assume Joes Corporation uses the effective-interest method to amortize any discount or premium.

1. Prepare the journal entry to issue the bond
2. Prepare the journal entry for the first interest payment