Show necessary journal entries to record the transaction

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On January 1, 2010, Busted Business Corporation issued ten-year, 8 percent bonds with a face value of $500,000. The semiannual interest dates are June 30 and December 31. The bonds were issued for $437,740 to yield an effective annual rate of 10 percent. The accounting year ends on December 31. Prepare entries in journal form without explanations to record the bond issue on January 1, 2010, and the payments of interest and amortization of discount on June 30 and December 31, 2010. Use the effective interest method of amortization of bond discount. Round your answers to the nearest dollar.

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Problem 1: Show necessary journal entries to record the above transaction

Reference no: EM132820680

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