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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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