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On January 1, 2011, Kentwood Company issued bonds with a face value of $800,000

Accounting

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On January 1, 2011, Kentwood Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1.

Instructions

a.     Prepare the journal entry for the issuance assuming the bonds are issued at 97.

b.     Prepare the journal entry for the issuance assuming the bonds are issued at 102.