On January 1, 2011, Akers Co. issued ($ 200,000) of five-year, 6 percent bonds at 96. Interest

Question:

On January 1, 2011, Akers Co. issued $\$ 200,000$ of five-year, 6 percent bonds at 96. Interest is payable annually on December 31. The discount is amortized using the straight-line method.

Required
Prepare the journal entries to record the bond transactions for 2011 and 2012.

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