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On January 1 of the current year, Feller Corporation issued $3,000,000 of 10% debenture bonds...

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Accounting

On January 1 of the current year, Feller Corporation issued $3,000,000 of 10% debenture bonds on a basis to yield 9%, receiving $3,134,580. Interest is payable annually on December 31 and the bonds mature in 6 years. The effective-interest method is used. (a) What is the interest expense for the first year? Use amortization schedule. (b) What is the interest expense for the second year? Use amortization schedule. (c) Pass necessary journal entry to record the issuance of the bond on January 1. (d) Pass necessary journal entry to record interest expense and amortization of discount/premium on December 31.

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