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Question
On June 30, Jamison Company issued $2,500,000 of 8%, 10-year bonds, dated June 30, for $2,580,000. Journalize the entries for the following transactions:
a. Issuance of bonds.
b. Payment of first semiannual interest on December 31 (record as a separate entry from the premium amortization).
c. Amortization by straight-line method of bond premium on December 31.
Answer
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