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On August 1, 2012, Laduke Corporation issued $600,000, 7%, 10-year bonds at face value. Interest is payable annually on August 1. Laduke"s year-end is December 31.
Instructions
Prepare journal entries to record the following events.
(a) The issuance of the bonds.
(b) The accrual of interest on December 31, 2012.
(c) The payment of interest on August 1, 2013.
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