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Exercise 273 Sage Hill Company issued $1,230,000,6%, 10 year bonds on December 31, 2019, for $1,180,800. Interest is payable annually on December 31. Sage Hill
Exercise 273 Sage Hill Company issued $1,230,000,6%, 10 year bonds on December 31, 2019, for $1,180,800. Interest is payable annually on December 31. Sage Hill uses the straight line method to amortize bond premium or discount. Prepare the journal entries to record the following events. (Credit account tities are automatically indented when the amount is entered. Do not indent manually.) (a) (b) (c) The issuance of the bonds. The payment of interest and the discount amortization on December 31, 2020 The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded Date Account Tities and Explanation Debit Credit Dec 31, 2019 Cash 1180800 Discount on Bonds Payable Bonds Parable
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