Question: 2. On January 1, a business issues $200,000 face value, 10 year, 8% contract rate bonds dated January 1. Interest is payable annually each December

2. On January 1, a business issues $200,000 face value, 10 year, 8% contract rate bonds dated January 1. Interest is payable annually each December 31. The bonds were issued at a discount of $25,000. Using the STRAIGHT-LINE METHOD, prepare the necessary journal entries to record total interest expense for the FIRST interest period.

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