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On 1/1/2019, Basalt Corp. Issued 1,000 - $1,000, 20 year, 6% bonds ($1,000,000 total bond issue). The bonds were issued at 98, this means that
On 1/1/2019, Basalt Corp. Issued 1,000 - $1,000, 20 year, 6% bonds ($1,000,000 total bond issue). The bonds were issued at 98, this means that the bonds were issued for 98% of their face value or $980 each, thus they were issued at a discount. The bonds pay interest each January, 1.
Show transactional analysis on the accounting equation for:
a. The bond issue on 1/1/2019
b. Accrual of interest and proper accounting of bond discount (straight line amortization)
c. Payment of interest on 1/1/2020
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