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Swifty Corporation issued $414,500 of 5-year, 7% bonds at 95 on January 1, 2022. The bonds pay interest annually.

Swifty Corporation issued $414,500 of 5-year, 7% bonds at 95 on January 1, 2022. The bonds pay interest annually.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello! I need help with the following accounting problem where we have to prepare the journal entries assuming the gonds were issued at 104. And then, computing the total cost of borrowing these bonds assuming they were issued at 103. All based on the info attatched below. Thank you. 

Swifty Corporation issued $414,500 of 5-year, 7% bonds at 95 on January 1, 2022. The bonds pay interest annually.
Transcribed Image Text:Swifty Corporation issued $414,500 of 5-year, 7% bonds at 95 on January 1, 2022. The bonds pay interest annually.
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