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On January 1,2019 , Desmond Corporation sold $600,000,8% bonds ( 7% APR market rate) for $620,621. The bonds were dated January 1,2019 , paying interest
On January 1,2019 , Desmond Corporation sold $600,000,8% bonds ( 7% APR market rate) for $620,621. The bonds were dated January 1,2019 , paying interest each June 30 and December 31 , and mature in 4 years. Required 1. Prepare the journal entry to record the issuance of the bonds. 2. Prepare the journal entries to record the interest payments on June 30,2019 , and December 31,2019 , using the effective-interest amortization method. 3. Show how the bond interest expense and bonds payable amounts should be reported on the December 31, 2019 income statement and balance sheet. \begin{tabular}{|l|l|l|l|} \hline Date & Account & Debit & Credit \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular}
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