On May 1, 2018, Green Corporation issued $2,700,000 of 8% bonds, dated January 1, 2018, for $2,658,000 plus accrued interest. The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Green’s fiscal year ends on December 31 each year.Required:1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale.2. Prepare the journal entry for the issuance of the bonds.
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