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Jimmy Company issued a $100,000 dollar bond paying interest annually.The interest rate payable is 6% and the market rate is 8%. 1)What is the price

Jimmy Company issued a $100,000 dollar bond paying interest annually.The interest rate payable is 6% and the market rate is 8%.

1)What is the price of the bond and please make the correct journal entry to record the sale of the bond.

2)Now use the effective interest rate (page 14-10) to amortize the discount or premium and then make the interest payment journal entry in year one and two.

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