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Wildhorse Company issued $355,000, 7%, 10-year bonds on January 1, 2020, for $381,126. This price...

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Accounting

Wildhorse Company issued $355,000, 7%, 10-year bonds on January 1, 2020, for $381,126. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Wildhorse uses the effective-interest method to amortize bond premium or discount.

(a)

Prepare the journal entry to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Jan. 1

eTextbook and Media

List of Accounts

Answer & Explanation Solved by verified expert
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