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On January 1 , 2 0 2 0 , Bonita Corporation issued $ 5 1 0 , 0 0 0 of 7 % bonds, due
On January Bonita Corporation issued $ of bonds, due in years. The bonds were issued for $ and
pay interest each July and January The effectiveinterest rate is
Prepare the company's journal entries for a the January issuance, b the July interest payment, and c the December
adjusting entry. Bonita uses the effectiveinterest method. Round intermediate calculations to decimal places, eg
and final answer to decimal places, eg If no entry is required, select No Entry" for the account
titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not
indent manually.
Discount on Bonds Payable
Bonds Payable
Interest Expense
Discount on Bonds Payable
Discount on Bonds Payable
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