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Entries for bond (held-to-maturity) investments Demopoulos Company acquired $172,800 of Marimar Co, 6% bonds on May 1 at their face amount. Interest is pald semiannually
Entries for bond (held-to-maturity) investments Demopoulos Company acquired $172,800 of Marimar Co, 6\% bonds on May 1 at their face amount. Interest is pald semiannually on May 1 and November I. On Novernber 1, Demopoulos Company sold $54,600 of the bonds for 95 . Journalize the entries to record the following: If an amount box does nok require an entry, leave it blank. a. The initial acquisition of the bonds on May 1 . May 1 Fentan "Cleakyy won a. Record the ifvestment at par and the cash paid. b. The semiannual interest received on November 1 . Nor. 1 c. The sale of the bonds on November 1 . Ni Feedback T Cleck My Work c. Calculate the proceeds: 95% face amount of bonds. Debit Cash for this amount. Credit Investment for the face amount recording any gain or loss as the difference between the sale amount and the face amount. d. The accrual of $1,182 interest on December 31
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