Hercules Inc. issues ($ 5) million, 5 -year, (10 %) bonds at 103 , with interest payable
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Hercules Inc. issues \(\$ 5\) million, 5 -year, \(10 \%\) bonds at 103 , with interest payable on July 1 and January 1. The straight-line method is used to amortize bond premium.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 1996.
(b) Prepare the journal entry to record interest expense and bond premium amortization on July 1, 1996, assuming no previous accrual of interest.
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Related Book For 
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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