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On January 1, 2012, Peterson Corporation Issued $100,000, 9%, 5-Year

question 60

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On January 1, 2012, Peterson Corporation issued $100,000, 9%, 5-year bonds with semiannual interest payments on June 30 and December 31. The bonds were issued at $93,529 yielding an effective-interest rate of 10%. Peterson uses the effective-interest method of amortization. Prepare the journal entries that Peterson would make on January 1, June 30 and December 31, 2012. Round all amounts to the nearest dollar.


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