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Garrison, Inc. On January 1,2024, Garrison, Inc., issued 9%,8-year bonds with a face amount...

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Accounting

Garrison, Inc.
On January 1,2024, Garrison, Inc., issued 9%,8-year bonds with a face amount of $2,700,000. Interest is payable annually on December 31. The market rate of interest is: 7%
Assume Garrison, Inc. received $3,000,000 from investors for the bonds issued. Record journal entries required on the following dates:
a. January 1,2024, Issued the bonds.
b. December 31, Paid the first interest payment due.
c. December 31,2024 Record amortization (using the Straight-line method) on the discount or premium.
INSTRUCTIONS: Prepare journal entries for the transactions and events above relating to the bonds of Garrison, Inc.
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