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Corpissued $1,000,000 of 6%, 5 year bonds on 1/1/18 for $918,887.The marketrate (yield) is 8%. The bonds are dated 1/1/18. The bonds pay interest semiannually
Corpissued $1,000,000 of 6%, 5 year bonds on 1/1/18 for $918,887.The marketrate (yield) is 8%. The bonds are dated1/1/18. The bonds pay interest semiannually on 7/1 and 1/1. Corp uses effective interestamortization.
1) Record the issuance of the bonds on 1/1/18
2) Record payment of interest on 7/1/18
3) Record accrual interest on 12/31/18
4) Record interest payment on 1/1/19
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