Question: Madrid Company plans to issue 8 bonds on January 1
Madrid Company plans to issue 8% bonds on January 1, 2013, with a par value of $4,000,000. The company sells $3,600,000 of the bonds on January 1, 2013. The remaining $400,000 sells at par on March 1, 2013. The bonds pay interest semiannually as of June 30 and December 31. Record the entry for the March 1 cash sale of bonds.
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