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On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7%, and interest is Said semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $333,650. The journal entry to record the first interest payment using straight-line amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense $9,835; debit Premium on Bonds Payable $1,365, credit Cash $11.200, Debit interest Payable 511.200: credit Cath $14200 Debt Bond Interest Expence $12,005, credit Oiscount on tonds Payable 51.366, credit Cash $1.200 Detit bond where top 32.506 oed Premium on tonds Payable 51.266, crede Cuin $1.200 Deon Bona interest Expense debit Discount on Bonds Payabile $1.365 Credit Cash $11.200
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