=+EX 14-6 Entries for issuing bonds and amortizing discount by straight-line method obj. 3

✔

b. $5,130,648 Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan Corporation issued $24,000,000 of five-year, 12% bonds at an effective interest rate of 10%, receiving cash of $25,853,146. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following:

a. Sale of bonds on March 1, 2010.