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On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rate

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On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $346,096. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit interest Expense $17,590.40; credit Premium on Bonds Payable $1,390 40; credit Cash $16,200.00 O Debit interest Payable $16,200.00, credit Cash $16.200.00 Debit interest Expense $14,809 60 debit Discount on Bonds Payable $390.40: Credit Cash $16.200 00 O Debit interest Expense $17.590.40. credit Discount on Bonds Payable $1.390.40, credit Cash $16,200.00 Debit interest Expense $16,200.00 Credit Cash $16,200.00 O

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