Prepare the journal entry to record the issuance of bonds

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Question - On January 1, Klosterman Company issued $462,000, 12%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

1. Prepare the journal entry to record the issuance of the bonds.

2. Prepare the journal entry to record the payment of interest on July 1, assuming that interest was not accrued on June 30.

3. Prepare the journal entry to record the accrual of interest on December 31.

Reference no: EM132049462

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