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E - F: 1 0 - 9 Accounting for debt investments Ababuo & Co . owns vast amounis of corporate bonds. Suppose Ababuo &c Co
EF: Accounting for debt investments
Ababuo & Co owns vast amounis of corporate bonds. Suppose Ababuo &c Co buys $ of FelixCo bonds at Gace value on January The FelixCo bonds pay interest at the annual rate of on June and December and mature on December Ababuo &c Ca intends to hold the investment until maturity:
Requirements
Journalize any required entries for the bond investment.
How much cash interest will Ababuo & Co receive each year from FelixCo?
How much interest revenue will Ababuo & Co report during on this bond investment?
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