Accounted for under effective interest method

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On January 1, 2011, Janson Bottle Company sold $600,000 in long-term bonds for $555,370. The bonds will mature in 10 years and have a stated interest rate of 5% and a yield rate of 6%. The bonds pay interest semi-annually on June 30 and December 31 of each year. The bonds are to be accounted for under the effective interest method.

Reference no: EM13139865

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