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On January 1, 2020, CBT Corp issued 10,000, 20 year, $1,000 bonds. The bonds have an annual coupon of $50, payable on December 31 of each year.
Required:
Problem a. all the journal entry to recognize the bond sale made by CBT on January 1, 2020.
Problem b. On January 1, 2023, 2,000 bonds were converted into common shares. Prepare the journal entry to recognize the conversion transaction.
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