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On January 1 , 2 0 2 0 , Bonita Corporation issued $ 5 1 0 , 0 0 0 of 7 % bonds, due

On January 1,2020, Bonita Corporation issued $510,000 of 7% bonds, due in 8 years. The bonds were issued for $542,033, and
pay interest each July 1 and January 1. The effective-interest rate is 6%.
Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31
adjusting entry. Bonita uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g.
1.251247 and final answer to 0 decimal places, e.g.38,548. If no entry is required, select "No Entry" for the account
titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not
indent manually.)
Discount on Bonds Payable
Bonds Payable
Interest Expense
Discount on Bonds Payable
Discount on Bonds Payable
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