Dominic Company issues $2 million, 10-year, 9% bonds at 98, with interest payable on July 1 and

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Dominic Company issues $2 million, 10-year, 9% bonds at 98, with interest payable on July 1 and January 1. The straight-line method is used to amortize bond discount.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2001.

(b) Prepare the journal entry to record interest expense and bond discount amortization on July 1, 2001, assuming no previous accrual of interest.

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Financial Accounting Tools For Business Decision Making

ISBN: 9780471347743

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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