Clem Company issued $800,000 of ten-year, 5 percent bonds on January 1, 2017. The bonds sold for
Question:
Clem Company issued $800,000 of ten-year, 5 percent bonds on January 1, 2017. 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, 2017,
(b) The payment of interest on December 31, 2017. The market interest rate on the bonds is 6 percent.
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Related Book For 
Fundamentals of Financial Accounting
ISBN: 978-1259269868
5th Canadian edition
Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh
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