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Kelly Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5% 20-year bonds dated June 1, 20X1 with interest payment
Kelly Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5\% 20-year bonds dated June 1, 20X1 with interest payment dates of December 1 and June 1. Kelly's yearend is December 31 . The entry to record the issuance of the bonds at face value plus accreued interest on October 1, 20X1 includes a A. credit to bonds payable for $1,000,000 B. credit to interest payable for $37,500 C. credit to cash for $975,000 D. debit to cash for $1,000,000 E. debit to interest expense for $37,500
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