Prepare the initial entry for the issuance of the bonds

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Reference no: EM131288825

Wright corporation issued $4,000,000 of 8% bonds on October 1,2014, due on October 1,2019. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold for $3,691,117 to yield 10% effective interest.

A. Prepare the initial entry for the issuance of the bonds

B. Using the effective interest method prepare journal entry for the first interest payment.

C. Prepare a journal entry for the second interest payment.

Reference no: EM131288825

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