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Bond issuance A $4,000,000 bond with a 10% interest rate was issued for $4,540,000 with an effective interest rate of 8%. Interest is paid on
Bond issuance
A $4,000,000 bond with a 10% interest rate was issued for $4,540,000 with an effective interest rate of 8%. Interest is paid on December 31. Prepare the journal entries for the initial entry for issuing the bond on Jan 1, 2016, the first interest payment on December 31, 2016 and the second interest payment on December 31, 2017.
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Auditing And Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
12th Edition
