Question: Bond Discount / Premium - Effective Interest Method On 01/01/19, Bixsby Services issued $169,000 of six-year, 12% bonds when the market rate of interest was

Bond Discount / Premium - Effective Interest Method

On 01/01/19, Bixsby Services issued $169,000 of six-year, 12% bonds when the market rate of interest was 11%. The bonds were issued for $172,000. Bixsby Services uses the effective interest method to amortize any discount or premium. Semiannual interest payments are made on 06/30 and 12/31 of each year.

REQUIRED:

1) Record the Journal Entry for the Interest payment and calculation of amortization using the effective interest method at 06/30/19.

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