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On January 1, a company issues $300,000 face value, 8%, 5 year bonds that pay semiannually on June 30 and December 31. On the issue
On January 1, a company issues $300,000 face value, 8%, 5 year bonds that pay semiannually on June 30 and December 31. On the issue date, the market rate of interest is 6% so these bonds were issued for $325,590.
Part A: Prepare journal entry(s) to record bond issuance
Part B: Prepare journal entry(s) to record first year of interest payment(s)
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