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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of...

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Accounting

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Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7% bonds to finance its operations of producing. and selling home improvement products, interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Jacinto company recelving cash of $6,194,985. a. Joumalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. 3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment

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