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Lorance Corporation issued $840,000, 8%, 10-year bonds on January 1, 2015, for $785,363. This price resulted in an effective-interest rate of 9% on the bonds.

Lorance Corporation issued $840,000, 8%, 10-year bonds on January 1, 2015, for $785,363. This price resulted in an effective-interest rate of 9% on the bonds. Interest is payable semiannually on July 1 and January 1. Lorance uses the effective-interest method to amortize bond premium or discount.image text in transcribed

Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2015. (Round answers to O decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Interest Expense 35262117 T Discount on Bonds Pay 1662 Interest Payable 33600

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