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On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000 of 8%. 20-year bonds at 110.625. The bonds pay interest on
On June 30, 2016, the market interest rate is 7%. Starship Enterprises issues $500,000 of 8%. 20-year bonds at 110.625. The bonds pay interest on June 30 and December 31. Starship amortizes bonds by the effective interest method. 1. Record issuance of the bonds on June 30, 2016, the payment of interest at December 31, 2016, and the semi-annual interest payment on June 30, 2017
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