On January 1, 2020, Denver Corporation issued 10-year, 4.5% bond with a maturity value of...
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On January 1, 2020, Denver Corporation issued 10-year, 4.5% bond with a maturity value of $500,000. The bonds sells at 104.10 and pay interest on July 1 and January 1. Denver Corporation amortizes the bond using the effective interest rate method. The market rate is 4%. Required: Prepare the journal entries to record the sale of the bond, the interest expense for July 1 and the interest accrual for December 31 (company has a year end of December 31). Explanations are not required. DATE ACCOUNT DEBIT CREDIT
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