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Farhan Corporation issued $ 1,000,000 of 8%, 28-year bond on January 1, 2020, at 84.95 to yield 8%. Interest is payable semi-annually on July 1
Farhan Corporation issued $ 1,000,000 of 8%, 28-year bond on January 1, 2020, at 84.95 to yield 8%. Interest is payable semi-annually on July 1 and January 1.
Prepare journal entries to record following:
(a) The issuance of bonds
(b) The payment of interest and related amortization on July 1, 2020
(c) The accrual of interest and related amortization on December 31, 2020
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Managerial Accounting
Authors: James Jiambalvo
5th edition
1118078764, 978-1118078761
