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please help, thanks. On January 1, a company issues bonds dated January 1 with a par value of $700.000. The bonds mature in 3 years.
please help, thanks.
On January 1, a company issues bonds dated January 1 with a par value of $700.000. The bonds mature in 3 years. The contract rate is 10% and interest is paid semiannually on June 30 and December 31. The bonds are sold for $682,000. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit interest Payable $35,000: Credit Cash $35,000 Debit interest Expense $35.000: credit Cash $35.000 Debit interest Expense $38.000: credit Discount on Bonds Payable $3.000 credit Cash $35.000 TILL Debit interest Payable $35,000 credit Cash $35,000. Debit interest Expense $35,000 credit Cash $35,000. Debit interest Expense $38.000; credit Discount on Bonds Payable $3,000, credit Cash $35.000 Debit interest Expense $32000. debit Discount on Bonds Payoble $3.000. credit Cash $35.000 Debit interest Expense $35,000 credit Premium on Bonos Payable $3,000 credit Cash $32,000Step by Step Solution
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