On January 1, 2021, Darnell Window and Pane issued $19.9 million of 10-year, zero-coupon bonds for $6,407,267. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 2. Determine the effective rate of interest. 1. & 3. to 5. Prepare the necessary journal entries.

Interest rate General Journal Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermedaite calculations and final answers to nearest whole dollar.) Credit No 1 Date General Journal January 01, 2021 Cash Discount on bonds payable Bonds payable Debit 6,407,267 13,492,733 19,900,000 December 31, 202 Interest expense 1,349,276 Discount on bonds payable 1,349,276 December 31, 202 No journal entry required December 31, 203 No journal entry required