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Question - Sandhill Company issued $308,000 of 8%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1.
The journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan. 1, 2020 Cash 308000
Bonds Payable 308000
Required - Prepare the journal entry to record the accrual of interest on December 31, 2020.
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