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Micro Company issued 10 year bonds on January 1, 2019. The face value of the...

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Accounting

Micro Company issued 10 year bonds on January 1, 2019. The face value of the bonds is $300,000. The stated interest rate on the bonds is 8 percent. The market rate of interest at the time of issuance was 10 percent. The bonds pay interest semi-annually on June 30th and December 31st.

REQUIRED:

  1. Calculate the issuance price of the bonds (Round to the nearest dollar).
  2. Record the journal entry for the issuance of the bonds on January 1, 2019.
  3. Record the journal entry to record the first interest payment on June 30, 2019.

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