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Question - On January 1, 2001, Bradley Corporation issued six-year bonds with a face value of $250,000 and a contract rate of 9%. The annual interest payment dates are January 1. Bradley uses the straight line method of amortizing bond premium or discount and the bonds are sold at $239,111.
Required -
1. Prepare the journal entry to record the issue of bonds on January 1, 2001.
2. Complete the amortization table for the bond.
3. ?Record the adjusting entry for interest due on December 31, 2001 based on above.
4. Record the payment of interest on January 1, 2002.
John Company, Assuming that the accounting period ends on a Tuesday, what amount of Wages Expense should be recorded on that date?
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