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On January 1, Durkin Limited issues 9%, 20 year bonds payable with a maturity value of $70,000. The bonds sell at 97 and pay interest on January 1 and July. Durkin amortizes bond discount by the straight line method.
REQUIREMENT:
1) Journalize the issuance of the bonds on January 1.
2) Journalize the semiannual interest payment and amortization of bond discount on July 1.
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