Teton Corporation issued $600,000 of 7% bonds on November 1, 2011, for $644,636. The bonds were dated November 1, 2011, and mature in 10 years, with interest payable each May 1 and November 1. Teton uses the effective-interest method with an effective rate of 6%. Prepare Tetons’ December 31, 2011, adjusting entry.
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