On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 (S3,500,000 x 6% x ½), receiving cash of $3,350,000. Journalize the...

Extracted text: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 (S3,500,000 x 6% x ½), receiving cash of $3,350,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.