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Question
Brubeck Co. issued $10,000,000 of 8% 30-year bonds on May 1 of the current year, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries for the following selected transactions for the current year:
May 1 Issued the bonds for cash at their face amount.
Nov. 1 Paid the interest on the bonds.
Dec. 31 Accrued interest for 2 months.
Answer
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