On January 1, 2020 Vaughn Company sold 11% bonds having a maturity value of $500000 for $518953, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020 and mature January 1, 2025, with interest payable December 31 of year year. Vaughn Company allocated interest and unamortized discount or premium on the effective interest basis. Prepare the journal entry at the date of the bond issuance.

On January 1,2020 , Vaughn Company sold 11% bonds having a maturity value of $500,000 for $518,953, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Vaughn Company allocates interest and unamortized discount or premium on the effective-interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)