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On January 1 , Groogle Inc. issued $ 5 0 0 , 0 0 0 , 5 % , 3 0 - year bonds at

On January 1, Groogle Inc. issued $500,000,5%,30-year bonds at 97. As a result of this transaction:
cash will increase by $500,000.
bonds payable will increase by $485,000.
premium on bonds payable will increase by $15,000.
cash will increase by $485,000.
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