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Exercise 1 0 - 5 ( Algo ) Straight - Line: Recording bond issuance and discount amortization LO P 2 Paulson Company issues 9 %
Exercise Algo StraightLine: Recording bond issuance and discount amortization LO P
Paulson Company issues fouryear bonds, on January of this year, with a par value of $ and semiannual interest payments.
Semiannual PeriodEnd Unamortized Discount Carrying Value
January issuance $ $
June first payment
December second payment
Use the above straightline bond amortization table and prepare journal entries for the following.
a The issuance of bonds on January
b The first interest payment on June
c The second interest payment on December
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