Question

On January 1, 2018, Darnell Window and Pane issued $19.1 million of 10-year, zero-coupon bonds for...

On January 1, 2018, Darnell Window and Pane issued $19.1 million of 10-year, zero-coupon bonds for $7,363,877 (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required: 2. Determine the effective rate of interest.

Inerest rate......?

3. Prepare the necessary journal entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermedaite calculation and final answers to nearest whole dollar.)

a. Record the issuance of the bonds. on January 1, 2018

b. Record annual interest expense at December 31, 2018.

c. Record annual interest expense at December 31, 2019.

d. Record the payment at the bonds' maturity. on December 31. 2027

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