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Laudie Company issued $400,000 of 9%, 10-year bonds on January 1, 2018, at 102. Interest is payable annually on January 1, 2019. REQUIRED: Prepare journal
Laudie Company issued $400,000 of 9%, 10-year bonds on January 1, 2018, at 102. Interest is payable annually on January 1, 2019. REQUIRED: Prepare journal entries to record the following transactions: a) The issuance of the bonds b) The accrual of interest on December 31, 2018. c) The payment of interest on January 1, 2019 d) After 5 years of issuance of bonds, the company retires the bonds at 98. The carrying value at that time is $404,000. Interest for the last period has been recorded and paid
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