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Mystle Company Issued $500000 8% 10-Year Bonds on December 31

Question 196

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Mystle Company issued $500000 8% 10-year bonds on December 31 2017 for $470000. Interest is payable annually on December 31. Mystle uses the straight-line method of amortization and has a calendar year end.
Instructions
Prepare the appropriate journal entries on
(a) December 31 2017.
(b) December 31 2018.

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