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On the first day of the fiscal year, a company issues a $370,000, 11%, 10-year bond that pays semiannual interest of $20,350 ($370,000 x 11%

On the first day of the fiscal year, a company issues a $370,000, 11%, 10-year bond that pays semiannual interest of $20,350 ($370,000 x 11% x 1/2), receiving cash of $388,500. Journalize the entry for the first interest payment and amortization of premium using the straight-line method.

If an amount box does not require an entry, leave it blank.

blank Bonds PayableCashDiscount on Bonds PayableInterest ExpenseInterest Payable - Select - - Select -
Bonds PayableCashDiscount on Bonds PayableInterest RevenuePremium on Bonds Payable - Select - - Select -
Bonds PayableCashDiscount on Bonds PayableInterest ExpensePremium on Bonds Payable - Select - - Select -

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