On July 1, 2007, Iaket Equipment Inc. issued $12,500,000 of 10-year, 11% bonds at an effective interest
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Instructions
1. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, 2007, and the amortization of the bond discount, using the interest method.
b. The interest payment on June 30, 2008, and the amortization of the bond discount, using the interest method.
2. Determine the total interest expense for 2007.
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Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
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