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How the interest expense and the bonds payable reported

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Reference no: EM132489287

Question - On January 1, 2020, Tampa Corporation sold a $950,000, 7 percent bond issue (9 percent market rate). The bonds were dated January 1, 2020, pay interest each December 31, and mature in 10 years.

Required -

1. Record the journal entry to record the issuance of the bonds.

2. Record the journal entry to record the interest payment on December 31, 2020. Use straight-line amortization.

3. Show how the interest expense and the bonds payable should be reported on the December 31, 2020, annual financial statement?

Reference no: EM132489287

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