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3.Discount Amortization

On the first day of the fiscal year, a company

issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105,000 ($3,500,000 × 6% × ½), receiving cash of $3,350,000.

Journalize the first interest payment and the amortization of the related bond discount. If an amount box does not require an entry, leave it blank.

Accounts Title Debit Credit

______ $___ $___

______ $___ $___

______ $___ $___

Top Answer

Account Title .........................Debit...........Credit Interest Expenses... View the full answer

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