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Question - On the first day of the fiscal year, a company issues a $1,000,000, five year bond that pays semiannual interest of $30,000, receiving cash of $936,420.
Required -
1. Journalize the entry to record the issue of the bonds.
2. Journalize the first interest payment and the amortization of the related bond issue above.
Determine the Salary allowance. Blossom Co. reports net income of $73,000. Partner salary allowances are Pitts $15,000, Filbert $7,000, and Witten $3,000.
Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Instaform
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