Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on
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Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions.
A. July 1, 2018: entry to record issuing the bonds
B. June 30, 2019: entry to record payment of interest to bondholders
C. June 30, 2019: entry to record amortization of discount
D. June 30, 2020: entry to record payment of interest to bondholders
E. June 30, 2020: entry to record amortization of discount
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Related Book For 
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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