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Question - Gluten Corporation has the following information pertaining to its Century Division for this year:
Century
Fixed manufacturing expenses $65,000
Fixed selling and administrative expenses 56,000
Sales 375,000
Direct manufacturing costs (variable) 88,000
Variable selling and administrative expenses 32,000
Corporate expenses allocated to the Century Division $89,000
Calculate the Century Division's contribution margin.
Required: Prepare the journal entries to record the issuance of the bonds and the first two interest payments
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