What is the journal entry recorded for the issuance

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Question - On January 1, Staple Company issued bonds with a face value of $200,000 and a 5 percent annual stated interest rate.  4% was the effective annual interest rate. Interest is paid out twice annually on June 30 and December 31. The bonds have a maturity of five years.

What is the journal entry recorded for the issuance of the bond by Staple Company on January 1st?

What is the journal entry recorded on June 30th for the first interest payment?

Reference no: EM132755602

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