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Grand Company Issued $800,000, 10%, 20-Year Bonds on January 1

Question 273

Essay

Grand Company issued $800,000, 10%, 20-year bonds on January 1, 2014, at 104. Interest is payable annually on January 1. Grand uses the straight-line method of amortization and has a calendar year end.
Instructions
Prepare all journal entries made in 2014 related to the bond issue.

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