Make entries to record second semiannual interest payment

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Question - On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. Make entries to record the following transactions for the current fiscal year:

(a) Issuance of the bonds.

(b) Second semiannual interest payment.

(c) Amortization of bond premium for the first year, using the straight-line method of amortization.

Reference no: EM132605902

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