On January 1, the first day of the fiscal year, a company issues a $400,000, 7%, 10-year bond that pays semiannual interest of $14,000 ($400,000 7% year), receiving cash of $400,000.

Part A: Journalize the entry to record the issuance of the bonds.

Part B: Journalize the entry to record the first interest payment on June 30.

Part C: Journalize the entry to record the payment of the principal on the maturity date.