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Question - On January 1, 2021, Darnell Window and Pane issued $18.5 million of 10-year, zero-coupon bonds for $6,515,413.
Required -
1. Determine the effective rate of interest.
2. Prepare the necessary journal entries.
Record the issuance of the bonds.
Record annual interest expense at December 31, 2021.
Record annual interest expense at December 31, 2022.
Record the payment at the bonds' maturity.
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