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Problem 10-8A (Part Level Submission) Fong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay
Problem 10-8A (Part Level Submission) Fong Corporation sold $2,000,000, 7%, 5-year bonds on January 1, 2017. The bonds were dated January 1, 2017, and pay interest on January 1. Fong Corporation uses the straight-line method to amortize bond premium or discount. (a) Your answer is correct. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2017, assuming that the bonds sold at 102. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Credit Jan. 1 Cash Premium on Bonds Pay T 40000 2,000,000 Bonds Payable Dec. 3 nterest Expense 132000 Premium on Bonds Payabl 140000 Interest Payable
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