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BE 257 On January 1, 2018, Hogan Enterprises Issued 8%, 20-Year Bonds

Question 26

Essay

BE 257
On January 1, 2018, Hogan Enterprises issued 8%, 20-year bonds with a face amount of $3,000,000 at 101. Interest is payable annually on January 1.
Instructions
Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization.

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