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On January 1, 2019, Burton Sales issued $32,000 in bonds for $34,800. These are eight-year bonds with a stated rate of 13% and pay semiannual
On January 1, 2019, Burton Sales issued $32,000 in bonds for $34,800. These are eight-year bonds with a stated rate of 13% and pay semiannual interest. Burton Sales uses the straight-line method to amortize the bond premium. Immediately after the issue of the bonds, the ledger balances are as follows: Bonds Payable 32,000 Premium on Bonds Payable OA. debit of $3,150 OB. debit of $175 OC credit of $2,625
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