On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for semiannual interest payments and they mature on July 1, 2039. The company received cash of $492,176, a price that provides an annual yield of 8%.

The company's fiscal year ends on March 31.

Using the interest method of accounting for bonds, prepare journal entries (to the nearest dollar) to record the following:

A. The issuance of the bonds

B. The payment of the first interest payment on January 1, 2020

C. The adjustment needed on March 31, 2020, .