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E10-7A Chavez Corp

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EXERCISE 10–7A Two accounting cycles for bonds issued at face value

On January 1, 2013 Chavez Corp. issued $200,000 of 10 year 6%
bonds at their face amount. Interest is payable on December 31 of each year with the first payment due December 31, 2013.

Prepare all the general journal entries related to these bonds for 2013 and 2014

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