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E15-9 Accounting for debt investments Advance &Co. owns vast amounts of corporate bonds. Suppose Advance buys pay interest at the annual rate of 3% on

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E15-9 Accounting for debt investments Advance &Co. owns vast amounts of corporate bonds. Suppose Advance buys pay interest at the annual rate of 3% on June 30 and December 31 and mature on $1,100,000 of Ferma Co bonds at face value on January 2, 2018. The FermaCo bond December 31, 2037. Advance intends to hold the investment until maturity. Requirements 1. Journalize any required 2018 entries for the bond investment. 2. How much cash interest will Advance receive each year from FermaCo? 3. How much interest revenue will Advance report during 2018 on this bond investment

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