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Unformatted text preview: been less than the face value of the bonds. The bonds would have been issued at a discount. 3. July 1 Interest Expense 15,000 Cash 15,000 To record payment of interest. Assets = Liabilities + Owners Equity 15,000 15,000 4. Dec. 31 Interest Expense 15,000 Interest Payable 15,000 To record accrual of interest. Assets = Liabilities + Owners Equity +15,000 15,000...
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- Summer '07