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On October 1, 2020Sheffield Corp.issued4%, 10-year bonds with a face value of $6000000at105. Interest is paid on October 1 and April 1, with any premiums
On October 1, 2020Sheffield Corp.issued4%, 10-year bonds with a face value of $6000000at105. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.
The entry to record the issuance of the bonds would include a credit of
$300000to Discount on Bonds Payable.
$120000to Interest Payable.
$5700000to Bonds Payable.
$300000to Premium on Bonds Payable.
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