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On January 1, 2017, Simpson Sales issued $21,000 in bonds for$27,800. These are eightminusyear bonds with a stated rate of 10% and pay semiannual interest.
On January 1, 2017, Simpson Sales issued $21,000 in bonds for$27,800. These are eightminusyear bonds with a stated rate of 10% and pay semiannual interest. Simpson Sales uses the straightminusline method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follow
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