GenLink Investment Banking Ltd.organized a bond issue for the Jin Company.The size of the issue was $2,000,000 with a stated interest rate of 6% payable on June 1 and December 1,for each of the next ten years.The bonds were issued on August 1,2017 with Jin Company receiving 89 1/2.Jin Company amortizes bond premiums and discounts using the effective-interest method.On the date of issue the market interest rate was 7.5%.
Prepare the following journal entries:
a_The entry for Jin Company to record the August 1,2017 issue.
b_The entry on December 1,2017.
c_The December 31,2017 adjusting entry.

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The Answer of GenLink Investment Banking Ltd.organized a bond issue for the Jin Company.The size of the issue was $2,000,000 with a stated interest rate of 6% payable on June 1 and December 1,for each of the next ten years.The bonds were issued on August 1,2017 with Jin Company receiving 89 1/2.Jin Company amortizes bond premiums and discounts using the effective-interest method.On the date of issue the market interest rate was 7.5%.
Prepare the following journal entries:
a_The entry for Jin Company to record the August 1,2017 issue.
b_The entry on December 1,2017.
c_The December 31,2017 adjusting entry.