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Question - Candle Lake Company issued $500,000 of 8%, 5-year bonds on January 1, 2021. The market rate of interest is 6%. Interest is payable semi-annually on June 30 and December 31.
Required - Prepare the journal entries to record the following events:
The issuance of the bonds on January 1.
The payment of interest expense at June 30.
The payment of interest expense at December 31.
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