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On January 1,2013,Timley Issues $2,200,000 of 6%,12-Year Bonds at a Price

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Essay

On January 1,2013,Timley issues $2,200,000 of 6%,12-year bonds at a price of 105½ that pay interest semiannually.The straight-line method is used to amortize any bond premium or discount.What is the journal entry to record the issuance of the bonds on January 1,2013?


Definitions:

Diminishing Marginal Returns

A principle in economics where each additional unit of input results in a smaller increase in output after a certain point.

Study Time

The period dedicated by an individual or group towards learning or academic activities.

Comprehensive Exam

A detailed and extensive exam typically covering multiple subjects or the entirety of a specific subject, often used as a qualification or assessment in higher education.

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain at a constant.

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