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Company A issued the following ten-year bonds on January 1, 2016: $100,000 maturity value, 6% interest payable annually on each December 31. The bonds were dated January 1, 2016 and the accounting period ends December 31. The bonds were issued for $93,000. Company A uses the straight-line method for amortization. The market rate of interest was 7%.
On income statement for the year 2016, what is the interest expense?
On balance sheet at December 31, 2016, what is the bonds payable, unamortization amount of discount, and net book value of bonds?
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The Internal Revenue Code
Is the amount of cash received upon making these two loans the same?
Sosmer Co. had these transactions during the current period. Prepare the journal entries for the transactions.
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