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Question: On January 1 of this year, Nowell Company issued bonds with a face value of $100,000 and a coupon rate of 8 percent. The bonds mature in five years and pay interest semiannually every June 30 and December 31. When the bonds were sold, the annual market rate of interest was 8 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
Note: Use appropriate factor(s) from the tables provided.
What amount of interest expense should be recorded on June 30 and December 31 of this year?
A corporation issued 450 shares of its $20 par value common stock in payment of a $9,610 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:
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