Determine the amount of cash received by green corporation

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Reference no: EM131021450

On May 1, 2006, Green Company issued $1,000,000 of 12% bonds dated January 1, 2006 for $975,000. The bonds mature on December 31, 2025, and pay interest semiannually on June 30th and December 31st. The firm's fiscal year ends on December 31st each year. Determine the amount of cash received by Green Corporation on May 1, 2006 and then show the proper journal entry.

Reference no: EM131021450

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