On July 1, 2018, Spear Co. issued 2,000 of its 10%, $1,000 bonds at 103...
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Accounting
On July 1, 2018, Spear Co. issued 2,000 of its 10%, $1,000 bonds at 103 plus accrued interest. The bonds are dated April 1, 2018 and mature on April 1, 2028. Interest is payable semiannually on April 1 and October 1.
What amount of cash did Spear receive from the bond issuance?
What is the amount of accrued interest and how is this treated in the entry?
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