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Question: 1. Medhurst Corporation issued $89,000 in bonds for $86,300. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment? If an amount box does not require an entry, leave it blank.
Interest Expense : ............? .................?
Cash : ..................? ...................?
2. Medhurst Corporation issued $86,700 in bonds for $84,000. The bonds had a stated rate of 6% and pay interest quarterly. What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.
Cash :............? ...............?
Discount on Bonds Payable :..................? ...................?
Bonds Payable : .......................? ......................?
In trying to decide whether to restore the Grand Am or to buy the Neon, Heather is distressed because she already has spent $11,300 on the Grand Am.
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