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Epoch Star & Co. owns vast amounts of corporate bonds. Suppose Epoch Star buys $1,400,000 of FormaCo bonds at face value on January 2, 2018.

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Epoch Star & Co. owns vast amounts of corporate bonds. Suppose Epoch Star buys $1,400,000 of FormaCo bonds at face value on January 2, 2018. The FormaCo bonds pay interest at the annual rate of 4% on June 30 and December 31 and mature on December 31, 2022. Epoch Star intends to hold the investment until maturity Read the requirements The FermaCo bond investment will be classified as a long-term asset as of December 31, 2018 Requirement 2a. Journalize on Epoch Star's books: Receipt of final interest payment on December 31, 2022. (Record debts first, then credits. Select the explanation on the last line of the joumal entry table) Date Accounts and Explanation Debit Credit 2022 Dec 31 Unrealized Holding Gain Hold-to-Maturity 1400000 Explanation Choose from any list or enter any number in the input fields and then click Check Answer Requirements sbg s. Sele 1. How would the bond investment be classified on Epoch Star's December 31, 2018, balance sheet? 2. Journalize the following on Epoch Star's books: a. Receipt of final interest payment on December 31, 2022. b. Disposition of the investment at maturity on December 31, 2022. Print Done

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