Clem Company issued $800,000, 10-year, 5 percent bonds on January 1, 2018. The bonds sold for $741,000.

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Clem Company issued $800,000, 10-year, 5 percent bonds on January 1, 2018. The bonds sold for $741,000. Interest is payable annually on December 31. Using effective-interest amortization, prepare journal entries to record

(a) The bond issuance on January 1, 2018, and

(b) The payment of interest on December 31, 2018. The market interest rate on the bonds is 6 percent.

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Fundamentals of Financial Accounting

ISBN: 978-1259864230

6th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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Question Posted: Jul 16, 2019 01:48 PM

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Clem Company issued $800,000, 10-year, 5 percent bonds on January 1, 2018. The bonds sold for $741,000.

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a January 1 2018 Cash 741000 Discount on Bond...View the full answer

Fundamentals of Financial Accounting

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