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On the first day of fiscal year, a company issues a $580,000, 9%, five - year bond that pays semi - annual interest of $26,100
On the first day of fiscal year, a company issues a $580,000, 9%, five - year bond that pays semi - annual interest of $26,100 ($580,000 times 9% times 1/2), receiving cash of $545,200. Journalize the entry to record the first interest payment and the amortization of the related bond discount for the six - month period using the straight - line method. If an amount box does not require an entry, leave it blank, or enter "0
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