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Problem - On January 1, Bravo Corporation issued $250,000, 6%, 5-year bonds at 96. Interest is payable semiannually on July 1 and January 1.
Enter in journal entries to record the
(a) Issuance of bonds
(b) Interest entries at time of payment on July 1, assuming no previous accrual of interest. Need to also show the entry of the amortization of the discount to interest.
(c) Interest entries for the accrual of interest on December 31. Need to also show the entry of amortization of the discount to interest.
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