Straight-line method used to amortizing bond discount

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Upton Company issues $3 million, 10-year, 6% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2010

(b) Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2010, assuming no previous accrual of interest.

Reference no: EM13140358

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