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Cornerstone Exercise 9-29 (Algorithmic) Debt Issued at a Premium (Straight Line) On January 1, 2020,...

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Accounting

Cornerstone Exercise 9-29 (Algorithmic) Debt Issued at a Premium (Straight Line)

On January 1, 2020, Ironman Steel issued $800,000, 8-year bonds for $897,000. The stated rate of interest was 6% and interest is paid annually on December 31.

Required:

Prepare the necessary journal entry on December 31, 2023, assuming the straight-line method is followed.

2023 Dec. 31 Interest Expense
Premium on Bonds Payable
Cash
(Record interest expense)

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