Zhuang Corporation issued $450,000,9.5%,eight-year bonds on May 1,2017.Interest is paid semiannually on November 1 and May 1 of each year.On the issuance date,the market rate of interest was 8.5%,resulting in a price of 103.5 for these bonds.The effective-interest method of amortizing the premium or discount is used.
a_Prepare the journal entry on May 1,2017,to issue the bonds.
b_Prepare the journal entry on November 1,2017,to record the first interest payment and the amortization of the premium.
c_Prepare the adjusting entry on December 31,2017.
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