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On January 1,2018,a Company Issues 3-Year Bonds with a Face

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Essay

On January 1,2018,a company issues 3-year bonds with a face value of $560,000 and a stated interest rate of 8%.Because the market interest rate is higher than the stated interest rate,the company receives $543,200 for the bond.
Required:
Part a.Determine the amount of the discount that will be amortized during the year ending December 31,2018.
Part b.Prepare the journal entry to record the first interest payment on December 31,2018.


Definitions:

Motor Unit

Single neuron and the muscle fibers it innervates.

Cholinesterase

An enzyme that breaks down acetylcholine and other choline esters in the nervous system to terminate synaptic transmission.

Troponin

A protein complex involved in muscle contraction; often measured to diagnose heart attacks.

Sarcolemma

The thin, plasma membrane that surrounds the cytoplasm of muscle cells, critical in muscle contraction.

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