$$n July $1,$ Year $1,$ Khatri Industries Inc. issued $$18,000,000$ of $10-$year, $5\%$ bonds at a market $($effective$)$ interest rate of $6\%,$ receiving cash of $$16,661,102.$ Interest on the bonds is payable semiannually on December $31$ and June $30.$ The fiscal year of the company is the calendar year.

INSTRUCTIONS

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July $1,$ Year $1.$