Question
As a long-term investment, Camex Inc. paid $800,000 (par value) for Simple Bank bonds. The bonds pay 5.5% interest semiannually on September 1 and March
As a long-term investment, Camex Inc. paid $800,000 (par value) for Simple Bank bonds. The bonds pay 5.5% interest semiannually on September 1 and March 1. Prepare the journal entries for the following transactions. Round all values to the nearest dollar.
- Purchase on September 1, 2020.
- Year-end adjusting entry, December 31, 2020.
- Receipt of semiannual interest payment March 1, 2021.
- Redemption of the bonds at maturity.
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Calculus Early Transcendentals
Authors: James Stewart
8th edition
978-1285741550
