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Book Barn Inc. issued $600,000 of 9%, 10 year bonds on June 30, 2015, for $562,500. This price provided a yield of 10% on
Book Barn Inc. issued $600,000 of 9%, 10 – year bonds on June 30, 2015, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semi annually on December 31 and June 30. Determine the amount of interest expense to record if financial statements are issued on October 31, 2015.
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