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Blossom Company issued $2000000 of 6%, 10-year bonds on one of its interest dates for $1727500 to yield an effective annual rate of 8%. The
Blossom Company issued $2000000 of 6%, 10-year bonds on one of its interest dates for $1727500 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a credit to Discount on Bonds Payable for $18200. O credit to Cash for $138201. O debit to Bond Interest Expense for $160000. O debit to Bond Interest Expense for $120000
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