Lincoln,Inc.issued $500,000 of 5%,5-year bonds dated January 1,2016 on July 1,2016 when the market required 6% interest for bonds of similar risk.The bonds pay interest on December 31 each year.The bonds sold at $493,251 including accrued interest.
Required: Prepare the journal entries for the sale of the bonds and the December 31 payment for the interest for these bonds.
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