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Sheffield Corp. issued $528,000 of 11-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $

Larkspur, Inc. issues a $730,000, 10%, 10-year mortgage note on December 31, 2022, to obtain financing for a new building. Th

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Sheffield Corporation
Bonds payable 528000
Loss on redemption ( balancing fig.) 5280
Discount on BP ( 528000 - 512160) 15840
Cash ( 528000 * 98% ) 517440
Larkspur Inc.
Cash 730000
Notes payable 730000
Interest exp.( 730000 * 10%) 73000
Notes payable ( balancing fig.) 45804
Cash 118804
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