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On January 1, 2018, Darnell Window and Pane issued $18.1 million of 10-year, zero-coupon bonds for...

On January 1, 2018, Darnell Window and Pane issued $18.1 million of 10-year, zero-coupon bonds for $6,978,334. (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.
1. & 3. to 5. Prepare the necessary journal entries.

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