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Pina Colada Corp. issued $6,840,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a
Pina Colada Corp. issued $6,840,000 of 8% bonds on October 1, 2020, due on October 1, 2025. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective annual interest. Pina Colada Corp. closes its books annually on December 31.
Prepare the adjusting entry for December 31, 2021. Use the effective-interest method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31Step by Step Solution
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