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Assume that all entries for accrual and payment of interest

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Tsai Co. issued $600,000 of 6 percent, 10 year, callable bonds on January 1, 2013, at their face value. The call premium was 3 percent (bonds are callable at 103). Interest was payable annually on December 31. The bonds were called on December 31, 2017. 

Required: 

Prepare the journal entries to record the bond issue on January 1, 2013, and the bond redemption on December 31, 2017. Assume that all entries for accrual and payment of interest were recorded correctly.

Reference no: EM13921926

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