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wurst. Incorporated sold its 8% bonds with a maturity value of $4.500.000 on August 1, 2018 for 119,000. At the time of the s
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Answer #1
Face value 4,500,000
issue price 4,419,000
discount on bonds 81,000
Straight line amortization 81,000/10
8100 semi annually
unamortized discount 8100*6
48600
Date Account titles Debit Credit
8/1/2020 Bonds payable 4,500,000
loss on Redemption 183,600
Discount on bonds payable 48600
Cash (4,500,000*1.03) 4635000
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