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June 1st - The company issues a 5-year bond with a face value of $100,000 and a stated annual rate of 6%. Interest is due

June 1st - The company issues a 5-year bond with a face value of $100,000 and a stated annual rate of 6%.

Interest is due on June 30th each year. The market rate is 8% on the date of issuance.

Prepare the Journal Entry for June 1st, and the journal entry to acrrue interest at year end. The effective interest method is used to amorize bond premiums and discounts.

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