On August 1, Clayton Co. issued 1,300,000 of 20 year, 9% bonds, dated August 1, for $1,225,000.

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On August 1, Clayton 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 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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College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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