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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