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XYZ Corporation issued $20,000,000 of 5 year, 6% bonds on May 1 of the current...

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Accounting

XYZ Corporation issued $20,000,000 of 5 year, 6% bonds on May 1 of the current year at face value, with interest payable semi-annually on May 1 and November 1. The bonds were issued at a market interest rate of 7%, resulting in XYZ Corporation receiving cash of $9,594,415. Journalize the entries to record the following transactions:
Issuance of the bonds on May 1
Paid the first semi-annual interest on the bonds on November 1

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