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Banner Company issued ten year, $200,000 bonds with a contract interest rate of 10%. The contract interest is paid semi-annually. The yield interest rate is

Banner Company issued ten year, $200,000 bonds with a contract interest rate of 10%. The contract interest is paid semi-annually. The yield interest rate is 8% and the bond price is 110 . Discounts and premiums are amortized using the effective interest method. REQUIRED: Prepare the journal entries for: a. The issue date. b. First six month interest payment. c. Second six month interest payment

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