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Cutler Inc. issued $20 million of 8 year 10% callable bonds dated July 1, 2018. The bonds were issued at 95. The bonds are callable
- Cutler Inc. issued $20 million of 8 year 10% callable bonds dated July 1, 2018. The bonds were issued at 95. The bonds are callable at 10 Burroughs uses straight-line amortization. Record the following transactions.
- Record the issuance on July 1.
- Record the first payment of interest on December 31.
- Record the second payment of interest on June 30.
- Was the effective interest rate greater than, less than, or equal to 10%?
- Record the bonds called on July 1, 2019.
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