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On January 1, 2019, Similah Corporation issued $8,000,000 face value, 7%, 15-year bonds at $8,777,020. This price resulted in an effective-interest rate of 6 %
- On January 1, 2019, Similah Corporation issued $8,000,000 face value, 7%, 15-year bonds at $8,777,020. This price resulted in an effective-interest rate of 6 % on the bonds. Similah corporation uses the effective- interest method to amortize bond premium or bond discount. The bonds pay annual interest on January 1
Required: Prepare the journal entry (in good form) to record the accrual of interest on December 31, 2019.
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