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ZZZ Co borrowed money by issuing $400,000 of bonds at 98 on January 1, 2020. The bonds pay interest on January 1 and July 1.

ZZZ Co borrowed money by issuing $400,000 of bonds at 98 on January 1, 2020. The bonds pay interest on January 1 and July 1. The stated rate of interest is 6% and the bonds mature in 5 years. Any discount or premium is amortized using the straight-line method.

Required: 

Prepare journal entries on the following dates: (No explanations required)

  1. January 1, 2020
  2. July 1, 2020
  3. December 31, 2020
  4. January 1, 2021
  5. January 1, 2025


 

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