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On July 1, a company issues a $605,000, 7%, 10-year bond that pays semiannual interest of $21,175 ($605,000 7% 1/2), receiving cash of $635,250. Required:
On July 1, a company issues a $605,000, 7%, 10-year bond that pays semiannual interest of $21,175 ($605,000 7% 1/2), receiving cash of $635,250.
| Required: | |
| Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest whole dollar. |
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Principles Of Corporate Finance
Authors: Richard A Brealey, Stewart C Myers, Franklin Allen
8th Edition
0073130826, 9780073130828
