On January 1, 2014, Buchheit Enterprises reported $95,000 in a liability called Bonds Payable, Net. This liability

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On January 1, 2014, Buchheit Enterprises reported $95,000 in a liability called "Bonds Payable, Net." This liability related to a $100,000 bond with a stated interest rate of 5 percent that was issued when the market interest rate was 6 percent. Assuming that interest is paid December 31 each year, prepare the journal entry to record interest paid on December 31, 2014, using the simplified effective-interest method shown in Chapter 10, Supplement 10C?
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Fundamentals of Financial Accounting

ISBN: 978-1259103292

4th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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