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2 Smith Company acquied $3,510,000 face value, 10% bonds as an ivalable for-sale investment on January 1 of the curten year when the macket rate
2 Smith Company acquied $3,510,000 face value, 10% bonds as an ivalable for-sale investment on January 1 of the curten year when the macket rate of interest was 12%. Interest is pad annually each Dececonbor 31 . Smith purchased the bonds; which mature in 12 years, for $3,075,155 Smith amotures the discount using the effective intecest rato method The fat value of the bonds at the end of the year is $3,011,000. Prepare the journal entries required on the duse of acquasiton and at the end of the first yew after acqusition. (Recond Piepare the jound entry required on the date of acquastion
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