On January 1, 2018, White Water issues $600,000 of 7% bonds, due in 10 years, with interest

Question:

On January 1, 2018, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year.
Required:
Assuming the market interest rate on the issue date is 7%, the bonds will issue at $600,000. Record the bond issue on January 1, 2018, and the first two interest payments on December 31, 2018, and December 31, 2019.