Alpine Company issues $2 million, 10-year, 7% bonds at 99, with interest payable on December 31. The

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Alpine Company issues $2 million, 10-year, 7% 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, 2017.
(b) Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2017, assuming no previous accrual of interest.
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Accounting Tools for Business Decision Making

ISBN: 978-1118096895

6th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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