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XYZ Corp. issued $1,000,000 in bonds on January 1, 2023, at 8% interest, payable annually. The bonds mature in 10 years. Calculate the annual interest




XYZ Corp. issued $1,000,000 in bonds on January 1, 2023, at 8% interest, payable annually. The bonds mature in 10 years. Calculate the annual interest expense and prepare the journal entries for the bond issuance and the first year’s interest payment. Discuss the effect of bond issuance on the company’s balance sheet and income statement.

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