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Huston Company issued $450,000 face value, 7%, 10-year bonds for $392,241 with a market rate of 9%. The effective interest method of amortization is used

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Huston Company issued $450,000 face value, 7%, 10-year bonds for $392,241 with a market rate of 9%. The effective interest method of amortization is used and interest is paid annually. The journal entry on the first interest payment date would include a credit to cash for: $35,302 $31,500 $40,500 $27.457

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