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Laudie Company issued $400,000 of 9%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1, 2021.
Instructions
Problem 1: Prepare the journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2020.
(c) The payment of interest on January 1, 2021.
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