Martinez Tree Farm issued 6 $1,000 bonds with a stated annual interest rate of 8 percent on January 1, 2018. The bonds mature on January 1, 2023. Interest is paid semiannually on June 30 and December 31. The bonds were sold at a price that resulted in an effective interest rate of 10 percent. The bonds can be called for 103.7 beginning June 30, 2020.

Prepare the entry on January 1, 2018, to record the issuance of these bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answers to 2 decimal places e.g. 589.71. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amount

Account Titles and Explanation	Debit	Credit