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  3. metlock corporation issued $40.000,7%,20 year bond

Metlock Corporation issued $40.000,7%,20 year bonds on January 1,2020 , for $486,981. This price resulted...

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Accounting

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Metlock Corporation issued $40.000,7%,20 year bonds on January 1,2020 , for $486,981. This price resulted in an effective: interest rate of 8% on the bonds. Interest is paryable annually on January 1. Metlock uses the effectivo- interest method to amortize bond premium or discount. Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places. e.s. 15,250. Credit account titles are outomatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the accrual of interest and the discount amortization on December 31, 2020. (Round answers to 0 decimal ploces, es. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Prepare the journal entry to record the payment of interest on January 1,2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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