Calculate the amount to be recorded for interest expense

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On November 1, 2019, Fields/Russell Corporation issued $800,000 worth of ten-year, 9 percent bonds. The semiannual interest dates are November 1 and May 1. Because the market interest rate of similar investments was 8.5 percent, the bonds were issued at a price of 103. Ignoring year-end accruals, prepare entries in journal form without explanations to record the bond issue on November 1, 2019, and the payments of interest and amortization of premium on May 1 and November 1, 2019. Use the effective interest method of amortization. Round answers to the nearest dollar.

Problem A. Show the journal entry required to record the issue of the bonds.

Problem B. Show the journal entry required to record the interest payment on May 1, 2020.

Problem C. Calculate the amount to be recorded for interest expense on November 1, 2020.

Reference no: EM132819536

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