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A bond with a face amount of $300,000 and a bond rate of 10% will mature in 10 years. The bond was issued at 98% of face value on January 1, 2013. The bond pays interest on January 1 and July 1.
Required:
Prepare the entry to record the issuance of the bond on January 1 and the entries required for July 1 and December 31 of 2013 (assume straight-line amortization).
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