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Unformatted text preview: ($1,246 Ã· 20), say $62, every six months. The entry for the first interest payment would be as follows: General Journal Date Account Title and Description Ref. De bit Cre dit Dec. 31 Interest Expense 53 8 Premium on Bonds Payable ($11,246 Ã· 20) 62 Cash ($10,000 Ã— 12% Ã— 6 / 12 ) 600 Pay semiannual interest (using straight-line amortization)...
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This note was uploaded on 12/25/2011 for the course FIN 3312 taught by Professor Staff during the Spring '08 term at Texas State.
- Spring '08