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Instructions On July 1, 2019, Salem Corporation issued $3.6 million of 9% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include
Instructions On July 1, 2019, Salem Corporation issued $3.6 million of 9% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $36, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.6 million. The value of the warrants at the time of issuance was $144,000. Required: Prepare in general journal format the entry to record the issuance of the bonds. GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
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