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On January 1,2013,Davie Services Issued $20,000 of 8% Bonds That \begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline\end{array}

question 52

Essay

On January 1,2013,Davie Services issued $20,000 of 8% bonds that mature in five years.They were sold at par.The bonds pay semiannual interest payments on June 30 and December 31 of each year.Please provide the journal entry for the payment made on June 30,2013.
\begin{array} { | l | l | l | } \hline \quad\quad& \quad&\quad \\\hline & & \\\hline\end{array}


Definitions:

Total Utility

The total satisfaction received from consuming a certain amount or combination of goods and services.

Money Income

The total amount of monetary earnings or receipts received by an individual or household from various sources before taxes.

Utility-Maximizing

Utility-maximizing is a principle in economics where individuals or entities choose the options that provide the highest satisfaction or utility from the available choices, given their preferences and constraints.

Substitute Goods

Products or services that can be used in place of each other. When the price of one falls, the demand for the other product falls; conversely, when the price of one product rises, the demand for the other product rises.

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