Question: On January 1 Murphy Inc issues 7 percent 20 year bonds

On January 1, Murphy, Inc., issues 7 percent, 20-year bonds with a face value of $ 650,000 at 96. Interest is payable on June 30 and December 31. Journalize the following entries:
a. Issuance of the bonds
b. Payment of semiannual interest on June 30 and December 31
c. Adjusting entry to amortize the discount on December 31, the company’s year end

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  • CreatedOctober 21, 2014
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