Clem Company issued 800 000 10 year 5 percent bonds on
Clem Company issued $ 800,000, 10-year, 5 percent bonds on January 1, 2015. The bonds sold for $ 741,000. Interest is payable annually on December 31. Using effective-interest amortization, prepare journal entries to record
(a) The bond issuance on January 1, 2015, and
(b) The payment of interest on December 31, 2015. The market interest rate on the bonds is 6 percent.
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