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Sophie Company issued bonds with an interest rate of 0% and a face value of $100,000. These are zero-interest bonds. The bonds mature in 20

image text in transcribed Sophie Company issued bonds with an interest rate of 0% and a face value of $100,000. These are zero-interest bonds. The bonds mature in 20 years. The market interest rate for bonds with the same degree of riskiness is 7% compounded annually. These bonds were issued on January 1 of Year 1. What is the journal entry made in connection with these bonds on December 31 of Year 1

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