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The balance sheet for Carla Vista Consulting reports the following information on July 1, 2020.
Long-term liabilities
Bonds payable $1,700,000
Less: Discount on bonds payable 85,000 $1,615,000
Carla Vista decides to redeem these bonds at 101 after paying annual interest.
Problem 1: Prepare the journal entry to record the redemption on July 1, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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