Problem 14-7AB Effective interest: Amortization of bond discount LO P1, P6

Legacy issues $610,000 of 6.5% four-year bonds dated January 1, 2013, that they pay interest semiannually on June 30 and December 31. They are issued at &540,981 and their market rate is 10% at the issue date.

Problem 14-7AB Effective interest: Amortization of bond discount LO P1, P6 Legacy issues $610,000 of 6.5%, four-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31 . They are issued at $540,981 and their market rate is 10% at the issue date. 1. Prepare the January 1, 2013, journal entry to record the bonds' issuance. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan. 1, 2013 Cash 540,981 Discount on bonds payable 69,019 Bonds payable 610,000