On May 1, 2019, Herron Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were dated May 1, 2019, and pay interest annually on May 1. Financial statements are prepared annually on December 31

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Kershaw Electric sold $6,000,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January 1, 2019, and paid interest on January 1. The bonds were sold at 98.

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The following section is taken from Mareska's balance sheet at December 31, 2019.

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Talkington Electronics issues a $400,000, 8%, 15-year mortgage not on December 31, 2018. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31.

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Presented below are three different lease transactions that occurred for Ruggiero Inc. in 2019. Assume that all lease contracts start on January 1, 2019. In no case does Ruggiero receive title to the properties leased during or at the end of the lease term.

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Paris Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January 1 and pay interest annually on January 1. Paris Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 104.

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Saberhagen Company sold $3,500,000, 8%, 10-year bonds on January 2019. The bonds were dated January 1, 2019 and pay interest annually on January Saberhagen Company uses the straight-line method to amortize bonds premium or discount.

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The following is taken from the Colaw Company balance sheet.

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On January 1, 2019, Lock Corporation issued $1,800,000 face value, 5%, 10-year bonds at $1,667,518. This price reslted in an effective-interest rate of 6% on the bonds. Lock uses the efective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

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On January 1, 2019, Jade Company issued $2,000,000 face value, 7%, 10-year bonds at $2,147,202. This price resulted in a 6% effective-interest rate on the bonds. Jade uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1.

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