On December 31,2015,when the market rate was 12%,Global Corp issued $2,000,000,14%,5-year bonds.Interest is payable semiannually on June 30 and December 31.The bonds were issued for $2,147,214,and the corporation uses the effective interest method of amortizing bond premium or discount.
Prepare the journal entries to record the issuance of the bonds and the first interest payment.
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