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On January 1, 2018, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $420,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. 3. If the market interest rate is 5%, the bonds will issue at $452,737. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

User Al Joslin
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Solution:

Jan 01, 2018

Cash $452,737

bonds payable $452,737

June 30,2018

Interest expense 13,655

bonds payable 1055

cash 12600

Dec 31,2018

Interest expense 13,692

bonds 12600

User Funkifunki
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