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Determine and prepare journal entry for issuance of bonds

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On January I, 2019 Cactus Co. decides to sell a series of ten-year bonds with a $200,000 face value at 103, when its discount rate is 12% and the market rate is 9%. Interest payments are semimanual.

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Question 1: Prepare the journal entries for the issuance of the bonds, and the interest expense related to the first interest payment.

Reference no: EM132470099

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