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Keller company issued 12% bonds, dated January 1, with the face amount of $4 million on January 1, 2020 for $3,576,242. The bonds mature on
Keller company issued 12% bonds, dated January 1, with the face amount of $4 million on January 1, 2020 for $3,576,242. The bonds mature on December 31, 2029 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30th and December 31, the second amortization period. Prepare the journal entry on December 31, 2020 for interest expense (the second amortization period).
Account | Dr | Cr |
Interest expense | ||
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