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On January 1, 2020, C&C Company issued 8% bonds dated January 1, 2020, with a face amount of $10 million. The bonds mature in 2029
On January 1, 2020, C&C Company issued 8% bonds dated January 1, 2020, with a face amount of $10 million. The bonds mature in 2029 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.
4. Prepare the journal entry to record interest on December 31, 2020, using the effective interest method.
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