On January 1, 2012 Clive Davis Company sold 12% bonds having a maturity value of $800,000 for $860,652 which provides the bondholders with a 10% effective yield. The bonds are dated January 1, 2012 and mature on January 1, 2017. Interest is payable annually on December 31st of each year. Clive Davis Company allocates interest and unamortized discount or premium using the effective interest method. The correct journal entry to record the issuance of the bonds is?