On January 1, a company issues bonds dated January 1 with a par value of $460,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $441,361. The journal entry to record the first interest payment using the effective interest method of amortization is:
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On January 1, a company issues bonds dated January 1 with a par value of $460,000. The bonds mature...
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