Hinali Corporation issued $1,000,000 of 7 percent bonds on October 1, 2010 at 96. The bonds are dated October 1 and pay interest semiannually. The market interest rate is 8 percent, and Hinala’s fiscal year ends on December 31. Prepare the entries in journal form to record the issuance of the bonds the accrual of the interest on December 31, 2010, and the first semiannual interest payment on April 1, 2011. Assume the company uses the effective interest method to amortize the bond discount.