On April 1, 2010, Everly Corporation issued 8% debentures dated January 1, 2010.The debentures had a face value of $3, 000, 000 and interest was payable on January 1 and July 1.The debentures were sold at par plus accrued interest.To record this event on April 1, 2010, Everly should debit cash for

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Everly Corporation should debit cash for $3,060,000, which includes the face value of $3,000,000 plus accrued interest for 3 months (January 1 to April 1). The annual interest is $240,000 (8% of $3,000,000), so the interest for 3 months is $60,000 ($240,000 * 3/12), making the total $3,060,000.

On April 1, 2010, Everly Corporation Issued 8% Debentures Dated