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Tulilo Corp issues $250,000, 10%, 15-year bonds. The current market rate is 10%. The journal entry to record the semiannual interest payment, assuming the
Tulilo Corp issues $250,000, 10%, 15-year bonds. The current market rate is 10%. The journal entry to record the semiannual interest payment, assuming the effective interest method is used, is Dr Bond Interest Expense for $25,000 Cr Cash for $25,000 Dr Bond Interest Expense for $12,500 Cr Bond Payable for $12,500 Dr Bond Interest Expense for $ 25,000 Cr Bond Payable for $ 25,000 Dr Bond Interest Expense for $12,500 Cr Cash for $12,500
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