On the first day of its fiscal year, chin company issued $14,800,000 of 5 years, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannual. The bonds were issued at a market (eggective) interest rate of 11%, resulting in Chin receiving cash 13,684,426

Cash 13,684,426

Discount on Bonds Payable 1,115,574

Bonds payable 14,800,000

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Interest

Discount on Bonds payable

Cash