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Cagney purchased a bond on January 1, 2018, for $150,000. The bond has a face value of $150,000 and matures in 10 years. The bond
Cagney purchased a bond on January 1, 2018, for $150,000. The bond has a face value of $150,000 and matures in 10 years. The bond pays interest on June 30 and December 31 at a 4% annual rate. Cagney plans on holding the investment until maturity. Requirement 1. Journalize the 2018 transactions related to Cagney's bond investment. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Begin by journalizing Cagney's investment on January 1, 2018. Date Accounts Debit Credit Jan. 1 Next, journalize Cagney's receipt of interest on June 30, 2018. Date Accounts Debit Credit Jun. 30Cagney purchased a bond on January 1, 2018, for $150,000. The bond has a face value of $150,000 and matures in 10 years. The bond pays interest on June 30 and December 31 at a 4% annual rate. Cagney plans on holding the investment until maturity. Date Accounts Debit Credit Jun. 30 Finally, journalize Cagney's receipt of interest on December 31, 2018. Date Accounts Debit Credit Dec. 31 Requirement 2. Journalize the transaction related to Cagney's disposition of the bond at maturity on December 31, 2027. (Assume the last interest payment has already been recorded.) Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) Date Accounts Debit Credit
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