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Friedman Company had bonds outstanding with a maturity value of $500,000. On April 30, 2013, when these bonds had an unamortized discount of $10,000, they
Friedman Company had bonds outstanding with a maturity value of $500,000.
On April 30, 2013, when these bonds had an unamortized discount of $10,000,
they were called in at 104. To pay for these bonds, Friedman had issued other
bonds a month earlier bearing a lower interest rate. The newly issued bonds had
a life of 10 years. The new bonds were issued at 103 (face value $500,000).
Issue costs related to the new bonds were $3,000.
Prepare a journal entry to record the refunding transaction
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