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  1. business
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  3. texxon corporation issued $500,000 of 8%, 10-year

Texxon Corporation issued $500,000 of 8%, 10-year bonds. Interest is paid semiannually. Assume that the...

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Accounting

Texxon Corporation issued $500,000 of 8%, 10-year bonds. Interest is paid semiannually. Assume that the market rate for similar investments is 6 percent.

  1. The journal entry that would be made when the first payment is made to the bondholders would include:

a. a debit to Cash for $20,000.00

b. a credit to Discount on Bonds Payable for $2,763.80

c. a debit to Interest Expense for $17,236.20

d. a debit to Bonds Payable for $20,000.00

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