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Prepare the journal entries to record the first two interest

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Reference no: EM13900940

Gomez issues $ 240,000 of 6%, 15  year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $ 198,494, and their market rate is 8% at the issue date. 

Required: 

1. Prepare the January 1, 2013, 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 14.7 for the bonds first two years. 

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

Reference no: EM13900940

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