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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

E-F:10-9 Accounting for debt investments
Ababuo & Co. owns vast amounis of corporate bonds. Suppose Ababuo &c Co. buys $900,000 of FelixCo bonds at Gace value on January 2,2025. The FelixCo bonds pay interest at the annual rate of 5% on June 30 and December 31 and mature on December 31,2033. Ababuo &c Ca intends to hold the investment until maturity:
Requirements
Journalize any required 2025 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 2025 on this bond investment?
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