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(4 points) On January 1, 2017, Tamarisk Company purchased 9% bonds having a maturity value of $210,000, for $227,220.83. The bonds provide the bondholders with

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(4 points) On January 1, 2017, Tamarisk Company purchased 9% bonds having a maturity value of $210,000, for $227,220.83. The bonds provide the bondholders with a 7% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Tamarisk Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. a. Record the journal entry for the purchase of the bond investment Accounts Debits Credits b. Prepare a bond amortization schedule: Date Carrying Value Cash Received Interest Revenue Premium Amortized 1/1/2017 227,220.83 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 C. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017. C. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017. Accounts Debits Credits

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