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Choose your answers from the option lists provided to indicate whether the transaction increased decreased, or had no effect on the balances of bond discount,
Choose your answers from the option lists provided to indicate whether the transaction increased decreased, or had no effect on the balances of bond discount, bond premium, and bonds payable. Each choice may be used once, more than once, or not at all. On July 1, Year 1, Smith issued a 10-year bond with a face amount of $200,000. The bond has a stated rate of 10%, and interest is payable annually on January 1 . The total proceeds from the issuance of the bond on July 1, Year 1, were $208,000 Bond discount Bond premium: Bonds payable: 3. Smith issued bonds with detachable stock warrants for a total amount equal to the face amount of the bonds. The stock warrants have a determinable value. Bond discount Bond premium: Bonds payable: 4
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