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On June 1, 2019, Blossom Company sold $3,660,000 in long-term bonds for $3,210,200. The bonds will...

On June 1, 2019, Blossom Company sold $3,660,000 in long-term bonds for $3,210,200. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method

Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2021

interest expense

discount on bonds payable

interest payable

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Expert Solution

ekkarill92 answered 2 years ago
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