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Prepare the journal entries for the issuance of the bonds

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Reference no: EM132431158

Problem: An investor wants to buy a 12-year, 12% bond with a $350,000 face value. Interest is paid annually. The bonds are selling for $398,295 when the market rate of interest is 10%.

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Question: Prepare the journal entries for the issuance of the bonds, and the first year's interest expense. Show all the calculations

Reference no: EM132431158

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