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Determine and journalize entry to record interest payment

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On the first day of the fiscal year, a company issues an $670,000, 6%, five-year bond that pays semiannual interest of $20,100 ($670,000 x 6% x 1/2), receiving cash of $629,800.

Question 1: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

Reference no: EM132466207

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