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AB Company issues $1,000,000, 5%, 5-year bonds dated January 1, 2020. The bonds pay interest annually on December 31. The bonds are issued to yield

AB Company issues $1,000,000, 5%, 5-year bonds dated January 1, 2020. The bonds pay interest annually on December 31. The bonds are issued to yield 6%.

What are the proceeds from the bond issue (issue price of bonds)?

Record the journal entry for issuance of the bonds.

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