issued $150,000, 5-year bond on January 1, 2021 paying6% interest on a semi-annual basis every January 1
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Question:
issued $150,000, 5-year bond on January 1, 2021 paying6% interest on a semi-annual basis every January 1 and July 1.
Prepare the first-year journal entries for the bond issue and interest expense assuming the company uses the effective interest method, a market interest rate of7% and has a year-end of December 31, 2021.
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