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Show the journal entry to record the first interest payment

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Question - On January 1, 2020, North Country Co issued 10-year, 7 percent bonds with a face value of $1 million. The market rate for bonds of this class at the time of issue was 8%. Interest is payable annually, with the first payment due on December 31, 2020.

a. Compute the issue price of the bonds.

b. Show the journal entry to record the issuance of the bonds on January 1.

c. Show the journal entry to record the first interest payment.

Reference no: EM132598262

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