Numbered Company Inc. issued $ 600,000, 6%, 20-year bonds on January 1, 2021, at 102. Interest is payable semi-annually on July 1 and January 1. Numbered Company has a December 31 year end. Assume amortization of $ 250 and $ 260, respectively for the first two semi-annual interest periods.
Instructions
Prepare all journal entries made in 2021 related to the bond issue.

Question

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The Answer of Numbered Company Inc. issued $ 600,000, 6%, 20-year bonds on January 1, 2021, at 102. Interest is payable semi-annually on July 1 and January 1. Numbered Company has a December 31 year end. Assume amortization of $ 250 and $ 260, respectively for the first two semi-annual interest periods.
Instructions
Prepare all journal entries made in 2021 related to the bond issue.