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Acquisition of bonds between interest dates using effective interest method (at bond
discount)
The bond mature on January 1, 2021 and pay interest annually on December 31. The
effective interest method of amortization is used.
ANSWERS:
2016
2017
4. On June 30, 2020 the bonds are sold at 110 plus accrued interest. Computation
and journal entries to record the sale of bonds.
Cash 5,700,000