Question
1.) Motown Corporation has the following information: Par value of bonds $ 400,000 Stated Interest rate 8% Effective Interest rate 10% Purchased for $ 369,112
1.) Motown Corporation has the following information: Par value of bonds $ 400,000 Stated Interest rate 8% Effective Interest rate 10% Purchased for $ 369,112 Purchased on 1/1/X2 Mature on 1/1/X7 Interest paid semi-annually on July 1 AND January 1 Bonds were purchased with the ability and intent to hold to maturity. The entry to record the purchase of the bonds is as follows: A. Debit the Held to Maturity Securities account and credit cash for $185,280 B. Debit the Held to Maturity Securities account and credit cash for $170,973 C. Debit the Held to Maturity Securities account and credit cash for $369,112 D. Debit the Held to Maturity Securities account and credit cash for $400,000 E. Debit the Held to Maturity Securities account and credit cash for $154,200
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