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Alpha Company purchased a $1,000, 5 years, 5% bond on July 1, 2015 for $950. Interest...

Alpha Company purchased a $1,000, 5 years, 5% bond on July 1, 2015 for $950. Interest is paid annually on June 30. The straight line method of amortization is used for both premiums & discounts. Use this information to prepare the adjusting General Journal entry (without explanation) for the December 31, 2017. If no entry is required then write "No Entry Required."

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Adjusting journal entry:
S.no. Accounts title and explanation Debit $ Credit $
31-Dec Interest expenses 30
     Interest payable (1000*5%*6/12) 25
     Discount on Bonds payable (50*1/5 *6/12) 5
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