On January 1, 2017, Larkspur Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following: 1. the issuance of the bond 2. the payment of interest on July 1st 3. the accrual of interest by December 31st

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A:

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