Prepare the journal entry to record the issuance

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On January 1, 2010, Lauren Corporation issued $40,000, 9%, ten-year bonds payable at 108. Interest is payable each December 31.

Requirements:
A. Prepare the journal entry to record the issuance of the bonds on January 1, 2010.
B. Prepare the journal entry to record the first interest payment on December 31, 2010. Use straight-line amortization. No adjusting journal entries have been made during the year.

Reference no: EM13124979

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