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Yale Corporation issued a 6%, $60,000 5-year bond dated January 1, with interest payable annually on December 31. The bond was sold to yield

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Yale Corporation issued a 6%, $60,000 5-year bond dated January 1, with interest payable annually on December 31. The bond was sold to yield 8% interest. Assume that the company uses the effective interest method to amortize bond discounts or premiums. a. Provide journal entries to be made on January 1 and December 31 of this first year.

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