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14 October, 13:35

On January 1, 20X1, Meister Company issues $200,000 of 6% bonds. Interest of $6,000 is payable semiannually on June 30 and December 31. The bonds mature in 5 years. The bonds were issued at face amount. All the bonds are privately placed with one investor. On the date of issue, the investor should record what journal entry?

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  1. 14 October, 13:56
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    Debit Credit

    Bank/Cash $200,000

    Bonds payable $200,000

    Explanation:

    The journal entry which shall be recorded by Meister Company in its accounts in respect of bonds issued by it, on January 1, 20X1, is mentioned below:

    Debit Credit

    Bank/Cash $200,000

    Bonds payable $200,000
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