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Strite Company issues $2 million, 10-year, 7% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount.
(a) Prepare the journal entry to record the sale of these bonds on January 1, 2012.
(b) Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2012, assuming no previous accrual of interest.
Prepare an income statement for the Dental Drilling Company and Prepare an income statement for Stein Books.
Midwest Corp completed the following transactions in 2012, the first year of operation.
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A company has several units of old-model telephones that it is selling for $10 per unit. The units cost $25 to produce. Is the company engaging in predatory pricing? Explain.
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