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Instructions On January 1 , Year 1 , Knorr Corporation issued $ 1 , 0 0 0 , 0 0 0 of 9 % ,
Instructions
On January Year Knorr Corporation issued $ of year bonds dated January Year
The bonds pay interest annually on December The bonds were issued to yield Debt issuance
costs associated with the bonds totaled $
Required:
Prepare the journal entries to record the following:
January Year
December Year
December Year
December Year
December Year
Sold the bonds at an effective rate of
First interest payment using the effective interest method
Amortization of bond issue costs using the straightline method
Second interest payment using the effective interest method
Amortization of bond issue costs using the straightline method
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