On January 1, Runner Corporation issued $2,000,000, 13%, 5-year bonds with interest payable on January 1.The bonds sold for $2,197,080.The market rate of interest for these bonds was 11%.On the first interest date, using the effective-interest method, the debit to Interest Expense is for

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Using the effective-interest method, the amount of interest expense is the difference between the interest paid and the interest calculated based on the carrying value of the bonds. 
First, calculate the annual interest payment: 
$2,000,000 x 13% = $260,000 
Next, calculate the carrying value of the bonds after one year: 
Carrying value = present value of future cash flows = $2,197,080 
- ($260,000 / (1 + 11%)^1) = $2,136,401 
Therefore, the interest expense for the first year is: 
$260,000 - $2,136,401 x 11% = $241,679 
The debit to Interest Expense is $241,679.

On January 1, Runner Corporation Issued $2,000,000, 13%, 5-Year Bonds