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On the first day of the fiscal year, a company issues a $886,000, 9%, 10-year bond that pays semiannual interest of $39,870 ($886,000 x 9%
On the first day of the fiscal year, a company issues a $886,000, 9%, 10-year bond that pays semiannual interest of $39,870 ($886,000 x 9% x 1/2), receiving cash of $930,300. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method.
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