Journalize the bond issuance

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Reference no: EM131881387

Problem

On January 1, the first day of the fiscal year, a company issues a $2,000,000, 8%, five year bond that pays semiannual interest of $80,000 ($2,000,000×8%×1/2), receiving cash of $2,170,604.

Required: Journalize the bond issuance.

Reference no: EM131881387

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