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1. On January 1, 2022, XYZ company purchased 10% Bonds, having a maturity value of $200,000, for $227,181. The bonds provide bondholders with an 8%

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1. On January 1, 2022, XYZ company purchased 10% Bonds, having a maturity value of $200,000, for $227,181. The bonds provide bondholders with an 8% yield and mature in 10 years. Interest is paid on July 1st and December 31st of each year. The bonds are classified as Held-to-Maturity and will be reported using the effective interest method. a) Prepare an amortization table for the 1st and 2nd year of the bond. b) Prepare the journal entry to be made on January 1, 2022 for the purchase of this bond investment. c) Prepare the journal entry to be made on July 1, 2022 for this bond investment. d) Prepare the journal entry to be made on December 31, 2022 for this bond investment. e) What is the total interest revenue reported on the Income Statement in 2022 for this bond? f) What is the new carrying value or the balance of the Held-to-Maturity securities account on December 31, 2022

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