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Ayayai Corp. issued 1,000 5%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. assist with the following journal entries:
(b) Prepare the adjusting journal entry on December 31, 2017, to record interest expense.
(c) Prepare the journal entry on January 1, 2018, to record interest paid.
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