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Journalize the entries to record the interest payment

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Question - On January 1, 2019 Russo Company issued $200,000 of 5 year 10% bonds to finance its operations. Interest is payable on June 1, and December 31. The bonds were issued at an effective rate of 8%, resulting in Russo Company receiving cash of $? Russo uses the effective interest method to amortize the bond, and the bonds are 5-year bonds.

Journalize the entries to record the following:

a) Figure the price of the bond and complete entry when the bond is first issued.

b) The June 1, interest payment.

c) The December 31, Interest Payment.

Reference no: EM132889337

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