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On August 1,2010,a Company Issues Bonds with a Par Value

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Essay

On August 1,2010,a company issues bonds with a par value of $600,000.The bonds mature in 10 years and pay 6% annual interest,payable each February 1 and August 1.The bonds sold at $632,000.The company uses the straight-line method of amortizing bond premiums.The company's year-end is December 31.Prepare the general journal entry to record the interest accrued at December 31,2010.


Definitions:

Terminal Numbers

Labels or numbers assigned to the connection points on an electrical device to guide correct wiring and setup.

Mechanical Linkage

A series of rigid links connected with joints to form a closed chain, or an open chain, which can transmit motion and forces from one point to another.

Circuit Wiring

The interconnected path through which electrical current flows to perform a specific function.

Electrical Circuits

Networks of electrical components connected together to allow the flow of electrical current in a complete path.

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