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CALCULATOR PRINTER VERSION BACK Exercise 15-07- The following section is taken from Sheridan Corp.s balance sheet at Decembe
Prepare the entry to record the accrual of interest on December 31, 2020. (Credit account titles are automatically indented w
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Answer #1

JOURNAL ENTRIES:

Date Account title Debit Credit
Jan 1

interest payable

Cash

$162000

.

.

$162000

Jan 1

bonds payable

loss on redemption of bond

Cash ($569500 x 1.02)

$569500

$11390

.

.

.

$580890

Dec 31

interest expenses {($1800000 - $569500) x 9%}

Interest payable

$110745

.

.

$110745

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