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Arif Corporation sold $400,000 of 12 percent, 10-year bonds at face value on September 1, 2011. The issue date of the bonds was May 1, 2011.
1. Record the sale of the bonds on September 1 and the first semiannual interest payments on November 1, 2011.
2. The company's fiscal year ends on December 31, and this is its only bond issue. What is the bonds interest expense for the year ended December 31, 2011?
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