ABC Corporation acquired $6,000,000 of 10% bonds on July 1, 2008. Interest was payable semiannually on Jun 30
and December 31. Management had the positive intent and ability to hold the bonds to maturity, which matured 2 years later. The market interest rate was 12% for bonds of similar risk and maturity. (P/A, 6%, 4) =3.47; (P/F, 6%, 4) =0.79
(1) Determine the amortized cost of the bonds on December 31 2008 and June 30 2009. And write down the related journal entries.
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