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The December 31, 2005, balance sheet of Far Imports includes the following items:The bonds were issued on December 31, 2004, at 97, withInterest payable on June 30 and December 31 of each year.On January 2, 2007, Far Imports retired $400,000 of thesebonds at 98.Prepare the journal entries to record retirement of the bonds,Including accrual of interest since the last payment andamortization of the discount.9% bonds payable due 12/31/2014................................$800,000Discount on bonds payable.................................... 22,472
Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and dis
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