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    Journal Entries to Record the Issuance of Bonds

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    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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    Solution Summary

    The attached file contains instructions for the creation of journal entries to (1) record the issuance of bonds, (2) the semi-annual interest payment for the first year, and (3) the amortization of the bond discount for the for the year, using the straight-line method of amortization.

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