Victoria Aerospace Inc. raised $9,371,338 by selling $9,000,000 of six-year, 10% bonds dated January 1, 2023. Victoria used part of the proceeds to pay its investment bank's fee of $600,000 and related legal and accounting fees of $400,000. Interest is payable on June 30 and December 31 each year. Victoriacan call the bonds on January 1, 2026, at 103.The company exercises this privilege, redeeming 20% of the bonds on the call date and retiring them. The company's year-end date is December 31.
Prepare journal entries to record the issuance of the bonds on January 1, 2023.