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Give the adjusting entry necessary at december

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Reference no: EM132718033

On April 1, Year 1, Knights Products, Inc. issued at par $25 million of 10%, 10-year bonds. Interest is payable semiannually each April 1 and October 1.

INSTRUCTIONS:

Problem a) What is the amount of cash paid to bondholders for interest during Year 1?

Problem b) Give the adjusting (Journal) entry necessary at December 31, Year 1 (if any), regarding this bond issue.

Reference no: EM132718033

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