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On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays semiannual interest of $13,300 ($380,000 × 7% × 1/2), receiving cash of $357,200.
Required:
Problem 1: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles.
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