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Legacy issues $690,000 of 7.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at
Legacy issues $690,000 of 7.0%, four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $623,078 and their market rate is 10% at the issue date.
Determine the total bond interest expense to be recognized over the bonds' life.
Prepare a straight-line amortization table for the bonds' first two years.
Prepare the journal entries to record the first two interest payments.
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