Make the necessary journal entries by Twin Digital on July

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Question - The long-term liability section of Twin Digital Corporation's balance sheet as of December 31, 2020, included 10% bonds having a face amount of $10 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%.Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 101 ($10.1 million) before their scheduled maturity.

Required - Make the necessary journal entries by Twin Digital on July 1, 2021.

Reference no: EM132738410

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