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Unformatted text preview: interest expense and the interest paid. The entry to record the first interest payment on December 31 using the effective interest method of amortizing the premium would be: General Journal Date Account Title and Description Ref. Debit Credit Dec. 31 Interest Expense ($11,246 10% 6 / 12 ) 562 Premium on Bonds Payable 38 Cash ($10,000 12% 6 / 12 ) 600 Pay semiannual interest using interest method of 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