On January 1, when the market interest rate was 9 percent, Seton Corporation completed a...
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On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $290,000, 8 percent bond issue for $271,387. The bonds pay interest each December 31 and mature in 10 years. Assume Seton Corporation uses the effective-interest method to amortize the bond discount Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar.) Answer is not complete. No Date General Journal Debit Credit 1 January 01 Cash 271,387 Discount on Bonds Payable 18,612 Bonds Payable 290,000 December 31 Interest Expense 2 24,425 Discount on Bonds Payable 1,225 23,200
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