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Question 16: Bond Transaction Journal Entries

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Question 16:

On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:

(a) Issuance of the bonds.
(b) First semiannual interest payment.
(c) Amortization of bond discount for the year, using the straight-line method of amortization

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Solution Summary

This solution provides the journal entries with comments in an attached Word document and journal entries with calculations in an attached Excel file.