On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $7,400,000 of 5-year, 11% bonds at a market (effective) interest rate of 12%, receiving cash of $7,127,643. Interest on the bonds is payable semiannually on December 31 and June 30.


Required:

Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.