Clem Company issued $ 800,000, 10-year, 5 percent bonds on January 1, 2015. The bonds sold for

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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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Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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