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Aco purchased $50,000 face value of Bco 6% bonds on September 1, 2022. The bonds paid interest each February 28 and August 31, and were
Aco purchased $50,000 face value of Bco 6% bonds on September 1, 2022. The bonds paid interest each February 28 and August 31, and were to mature on August 31, 2025. They were purchased to yield 8%, and accounted for using the amortized cost model. HAND-IN a) Calculate the price of the bonds. b) Prepare an amortization schedule for the bonds, to maturity. c) Write the journal entry to record the purchase of the bonds. d) Write the year-end adjusting entry for December 31, 2022
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