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On May 1, 2021, Green Corporation issued $1,600,000 of 12% bonds, dated January 1, 2021, for $1,408,000 plus accrued interest. The market rate of interest

On May 1, 2021, Green Corporation issued $1,600,000 of 12% bonds, dated January 1, 2021, for $1,408,000 plus accrued interest. The market rate of interest was 13%. The bonds pay interest semiannually on June 30 and December 31. Green's fiscal year ends on December 31 each year.

Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds.

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