Journalize the entries to record the following selected held-to-maturity investment transactions for XYZ Corp: 1. Purchased for
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1. Purchased for cash $20,000,000 of Dognaught Corporation five-year, 6% bonds at 101.7 on their issuance date, March 1, 2015. XYZ Corp. intends to hold these bonds to their maturity. The market interest rate at the time of purchase was 5.6%.
2. Recorded receipt of the first semiannual interest payment and amortization of the premium on September 1, using the effective interest method.
3. Recorded accrued interest and amortization of premium at December 31, XYZ Corp.'s year-end.
4. Recorded receipt of cash for the bonds on their maturity date, March 1, 2020.
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Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
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