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Blossom Electric sold 3,000,000,8%,10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses
Blossom Electric sold 3,000,000,8%,10-year bonds on January 1, 2020. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 101. Prepare the journal entries for interest and the amortization of the premium in 2020 and 2021. (Credit account titles are outomatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.]
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