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Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay
Exercise 2:
On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were issued for $644,636, and pay interest each July 1 and January 1. Assume an effective-interest rate of 6%.
Required:
Prepare the companys journal entries for
1- The January 1 issuance.
2- The July 1 interest payment.
3- The Dec 31 adjusting entry.
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