On the first day of the current fiscal year, $1,000,000 of 10-year, 7% bonds, with interest payable semiannualy were sold for $1,050,000. Present entries to record the following transactions for the current fiscal year:
(a) Issuance of the bonds
(b) First semiannual interest payment
(c) Amoritization of bond discount for the year, using the straight-line method of amortization.
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For your review, I have attached a formatted MS Excel spreadsheet containing assistance for the journal entries of premium bond issuances.© BrainMass Inc. brainmass.com December 24, 2021, 11:00 pm ad1c9bdddf>