Problem:
On the first day of the fiscal year, a company issues a $1,400,000, 8%, 6-year bond that pays semiannual interest of $56,000 ($1,400,000 x 8% x ½), receiving cash of $1,615,414.
Required:
Question: Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
Note: Show all workings.