Give me correct answer with explanation..j On January 1, Year 1, Price Company issued $248,000 of five-year, 6 percent bonds at 97. Interest is payable annually on December 31.The discount is amortized using the straight-line method.RequiredPrepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet13Record the entry for recognizing interest expense on Dec. 31, Year 1.Note: Enter debits before credits.DateDec 31General JournalDebitCreditInterest expense7,440Discount on bonds payable1,488Cash8,928Record entryClear entryView general journal

Detailed explanation:Given : Face Value of Bonds, $ 248,000Stated Interest of Bonds 6%, paid…

Answered: On January 1, Year 1, Price Company…

Principles of Accounting Volume 1

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,...

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