Homework Answers
a) Interest paid in Cash each year = 3000000*7% = 210000
b) Selling price of bonds = 210000*7.3601+3000000*.5584 = 3220821
c) Journal entry
| Date | account and explanation | Debit | Credit |
| Interest expense (3220821*6%) | 193249.26 | ||
| Premium on bonds payable | 16750.74 | ||
| Interest payable | 210000 |
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