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n the first day of its fiscal year, Keller Company issued $25,000,000 of five-year, 10% bonds to finance its operations of producing and selling home
n the first day of its fiscal year, Keller Company issued $25,000,000 of five-year, 10% bonds to finance its operations of producing and selling home improvement products. t is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Keller Company receiving cash of $23,1 60,1 13. a. Journalize the entries to record the following: 1. 2. 3. 4. Sale of the bonds First semiannual interest payment. (amortization of gain/discount is to be recorded annually) second semiannual interest payment Amortization of the gain/discount at the end of the first year, using the straight-line method (Round to the nearest dollar) b. Determine the amount of the bond interest expense for the first year
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