Find and journalize the first interest payment

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Discount Amortization

On the first day of the fiscal year, a company issues a $1,300,000, 6%, 6-year bond that pays semiannual interest of $39,000 ($1,300,000 × 6% × ½), receiving cash of $1,177,994.

Problem 1: Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Accounts Payable
Bonds Payable
Discount on Bonds Payable
Interest Expense
Interest Payable
Premium on Bonds Payable

Reference no: EM132696549

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