Rural Bell Company issued 9-year,8%,$750,000 bonds on January 1,20X9.The bonds pay interest every June 30 and December 31,with the principal to be paid in 9 years.The effective interest rate on the bonds is 10%,and the company uses the effective-interest method of amortization.
a.Compute the initial selling price of the bonds on January 1,20X9.
b.Prepare the entry needed on June 30,20X9.
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