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sShannon Company issued $1,000,000, 8%, 10-year bonds on December 31, 2016, for $960,000. Interest is payable annually on December 31. Shannon uses the straight-line method
sShannon Company issued $1,000,000, 8%, 10-year bonds on December 31, 2016, for $960,000. Interest is payable annually on December 31. Shannon uses the straight-line method to amortize bond premium or discount.
(a) | The issuance of the bonds. | |
(b) | The payment of interest and the discount amortization on December 31, 2017. | |
(c) | The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. |
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