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Determine the total bond interest expense

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Question: Roney issues $120,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. They are issued at $99,247, and their market rate is 8% at the issue date.

Required: 1. Prepare the January 1, 2011, journal entry to record the bonds' issuance.

2. Determine the total bond interest expense to be recognized over the life of the bonds.

3. Prepare a straight-line amortization table like the one in Exhibit for the bonds' first two years.

4. Prepare the journal entries to record the first two interest payments.

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Reference no: EM131534787

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