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The Free Group issues $100,000 of 6% bonds on January 1, 2020 for $107,795. The bonds will mature on December 31, 2029 (10 years). The
The Free Group issues $100,000 of 6% bonds on January 1, 2020 for $107,795. The bonds will mature on December 31, 2029 (10 years). The market yield for bonds of similar risk and maturity is 5%. Interest is paid semiannually on July 1 and January 1.
a. Free Group has a calendar year-end and issues financial statements as of December 31.
Prepare the journal entry to record the issuance of the bonds on 1/1/2020 and any other journal entry(ies) required in 2020 related to this bond issuance. Free Group uses the effective interest method
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