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Question 18: On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on...

Question 18:  
  
On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000.  Interest is payable semiannually on February 1 and August 1.  Present the entries to record the following transactions for the current year:
(a) Issuance of the bonds.
(b) Accrual of interest and amortization of bond discount for the year, on December 31, using the straight-line method.

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Question 18 - bonds.doc

Question 18:
On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for
$1,225,000. Interest is payable semiannually on February 1 and August 1. Present the
entries to...

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