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How to account for this operation

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Question - Need help to understand how to account for this operation: On October 1, 2020, a company issued bonds with a principal (maturity) of $ 500,000 and a stated interest of 10% at par value plus accrued interest (accrued interest). The effective interest rate was 10%. The bonds were originally dated January 1, 2020 and mature on January 1, 2025 with interest payable on January 1 of each year.

Reference no: EM132860441

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