Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1.

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Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1. The straight-line method is used to amortize bond discount.

(a) Prepare the journal entry to record the sale of these bonds on January 1, 2017.

(b) Prepare the adjusting journal entry to record interest expense and bond discount amortization on December 31, 2017.

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Accounting Principles

ISBN: 978-1118875056

12th edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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Question Posted: Apr 23, 2020 07:07 AM

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Sweetwood Company issues $5 million, 10-year, 9% bonds at 96, with interest payable annually on January 1.

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