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by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016,...

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by Straight-Line Method Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $ market (effective) interest rate of 7%, receiving cash of $7,081,168. Interest is payable semiannually on April 1 and October l 6,200,000 of 10-year, 9% bonds at a a. Journalize the entry to record th e issuance of bonds on April 1, 2016. For a compound transaction, if an amount bax does not require an entry, leave it b. Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line Round to the nearest dollar. For a compound transaction if an ethod. The bond premium ann tization is combined with the semiannual interest payment. amount box does not require an entry, leave it blank. c. Why was the company able issue the bonds for $7,081,168 rather than for the face amount of $6,200,000 The market rate of interest is the contract rate of interest. Previous Next 2 more Check My Work uses remaining 1:29 AM 11/16/20 ^ /14

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