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Dunder Mifflin authorized a $1,000,000, 10-year, 6% bond issue dated January 1, 2019. Annual interest will be paid each December 31. On January 1,
Dunder Mifflin authorized a $1,000,000, 10-year, 6% bond issue dated January 1, 2019. Annual interest will be paid each December 31. On January 1, 2019, the bonds were issued for $920,000 cash. Dunder Mifflin has a December 31 year-end. Answer the below four questions: A. Prepare the journal entry to record the sale of bonds on January 1, 2019. B. Prepare the journal entry to record interest expense on December 31, 2019. C. What is the total net cash return to the investor over the bond's life?
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