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Question - On April 1, 2020, Larel Corporation issued $40,000, 9%, ten-year bonds payable at 108 that were dated April 1, 2020. Interest is payable each March 31 and September 30.
Required -
(a) Give the entry to record the issuance of the bonds on April 1, 2020.
(b) Give the entry to record the first interest payment on September 30, 2020. Use straight-line amortization.
(c) Give the adjusting entry required on December 31, 2020, the end of the annual accounting period. Use straight-line amortization.
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