Question: The Bailey Corporation issued 5 year 11 bonds with a face
The Bailey Corporation issued 5-year, 11% bonds with a face value of $300,000 on April 1 for $288,000. Interest is paid semiannually at October 1 and April 1. Prepare the journal entries to record the issuance on April 1 and the first interest payment on October 1. Use the straight-line method to amortize the discount.
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