223. On January 1, Dade Corporation issued $3,000,000, 7%, 5-year bonds with interest payable on December 31. The bonds sold for $3,216,288. The market rate of interest for these bonds was 6%. On the first interest date, using the effective-interest method, the debit entry to Interest Expense is for

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To calculate the interest expense using the effective-interest method, we need to first calculate the interest payment based on the face value of the bonds, which is $3,000,000 x 7% = $210,000. 
Next, we need to calculate the amount of interest expense based on the market interest rate of 6%. 
On January 1, the bond was issued at a premium of $3,216,288 - $3,000,000 = $216,288, which means that the bond is expected to yield a lower rate of return than the market rate. 
Therefore, the effective interest rate will be lower than the stated 7%. 
Using the effective-interest method, we calculate the interest expense as follows: 
- Year 1: $216,288 x 6% = $12,977 premium amortization + $210,000 interest payment = $222,977 interest expense 
Therefore, the debit entry to Interest Expense on the first interest date is $192,977 ($210,000 - $12,977).