Question

1. On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The...

1. On January 1, 2015, Bose Company issued bonds with a face value of $600,000. The bonds carry a stated interest of 7% payable each January 1 and July 1.

Instructions

a.Prepare the journal entry for the issuance assuming the bonds are issued at 95.

b.Prepare the journal entry for the issuance assuming the bonds are issued at 105.

c. Prepare the journal entry for payment of interest on July 1, assuming the bonds were issued at 100.

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