On January 1, 2017, Fleming Corporation issued 9%, 10-year bonds with a face value of $900,000 at 93.78. Interest is payable semiannually on January 1 and July 1. The effective-interest rate when the bonds were issued was 10%. Any discount or premium is amortized using the effective-interest method.
Required:
Prepare journal entries on:
1. January 1, 2017
2. July 1, 2017
3. December 31, 2017, the fiscal year end
Omit explanations.
Correct Answer:
Verified
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