Townsend Company sells bonds that cost $40,000 for $45,000, including $1,000 of accrued interest. In recording the

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Townsend Company sells bonds that cost $40,000 for $45,000, including $1,000 of accrued interest. In recording the sale, Townsend books a $5,000 gain. Is this correct? Explain.

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Accounting Tools for Business Decision Making

ISBN: 978-1118128169

5th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Apr 07, 2014 11:26 AM

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Townsend Company sells bonds that cost $40,000 for $45,000, including $1,000 of accrued interest. In recording the

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Accounting Tools for Business Decision Making

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