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On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable semiannually, were sold for $1,225,000. Present entries to record the following transactions for the current fiscal year:(a) Issuance of the bonds.(b) First semiannual interest payment.(c) Amortization of bond discount for the year, using the straight-line method of amortization.
(a) Prepare the journal entry to issue $100,000 bonds which sold for $90,000.(b) Prepare the journal entry to issue $100,000 bonds which sold for $105,000.
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