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9) On April 1, year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually
9) On April 1, year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April 1 and October 1. Refer to the above data. The journal entry to record the first cash payment to bondholders on October 1, year 1, will include: A credit to Cash of $2,000,000. A debit to Bonds Payable of $1,000,000. A debit to Interest Expense of $1,000,000 A credit to Interest Payable of $1,000,000
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