ISSUING BONDS AT A FACE AMOUNT

On January 1, the first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual interest of $21,000 ($700,000 6% year), receiving cash of $700,000.

(a) Journalize the entry to record the issuance of the bonds.

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(b) Journalize the entry to record the first interest payment on June 30.

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(c) Journalize the entry to record the payment of the principal on the maturity date.

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