Record the journal entry necessary

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Question - On 1/1/18, Raj Collections Inc. issued $800,000 face value, ten year bonds and received $930,834 as cash proceeds on the date of issuance. The coupon rate was 6% and the market rate of interest at issuance was 4%. The coupon payments are semi- annual and are paid on 6/30 and 12/31 each year. Show all calculations. You do not need to recalculate the issuance proceeds.

a. Record the journal entry necessary at 6/30/2018.

b. Record the journal entry necessary at 12/31/2018.

Reference no: EM132784864

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