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On January 1, 2013, a company issued and sold an $800,000, 6%, five-year bond payable and received proceeds of $825,000. Interest is payable each june
On January 1, 2013, a company issued and sold an $800,000, 6%, five-year bond payable and received proceeds of $825,000. Interest is payable each june 30 and December 31. The company uses straight-line method to amortize the premium. Prepare the journal entry to record the bond payable and the journal entry to record the first interest payment.
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