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Daan Corporation wholesales repair products to equipment manufacturers

Author:
January 8th, 2018

Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan Corporation issued $24,000,000 of five-year, 12% bonds at an effective interest rate of 10%, receiving cash of $25,853,146. Interest is payable semiannually on March 1 and September 1. Journalize the entries to record the following:(a) Sale of bonds on March 1, 2010.(b) First interest payment on September 1, 2010, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.)

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