On January 1, when the market interest rate was 8 percent, Seton Corporation completed a $160,000, 7 percent bond issue for $149,265. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount. Complete the required journal entries to record the bond issuance and the first interest payment on December 31. Record the issuance of bonds for $149,265 with a face value of $160,000. Record the interest payment on December 31.