Amortization by straight-line method of bond premium

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On June 30, 2009, Arlington Company issued $1,500,000 of 10-year, 8% bonds, dated June 30, for $1,540,000. Present entries to record the following transactions:

Arlington Company:

(1) Issuance of bonds.

(2) Payment of first semiannual interest on December 31, 2009.

(3) Amortization by straight-line method of bond premium on December 31, 2009.

Reference no: EM13156126

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