Exercise D 10 Record investment in bonds at a discount (LO D 5) On January 1, Dora purchases 175 of the $1,000, 7 , 15 year bonds issued by Splash City, with interest receivable semiannually on June 30 and December 31 each year Assuming the market interest rate on the issue date is 8 , Dora will purchase the bonds for $159,869 2 Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31 (If no entry is required for a particular transaction event, select No journal entry required in the first account field Round your answers to the nearest whole dollar amount ) Exercise D 10 Part 2 2 Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31 (If no entry is required for a particular transaction event, select No journal entry required in the first account field Round your answers to the nearest whole dollar amount ) X Answer is complete but not entirely correct No Date General Journal Debit Credit 1 January 01 Investments 175,000 X Cash 159,869 15,131 Bonds Payable X 2 June 30 Cash 6,125 Bonds Payable 270 Interest Revenue 6,395 3 December 31 Cash 6,125 Bonds Payable X 281 Interest Revenue 6,406

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Exercise D-10 Record investment in bonds at a discount (LO D-5) On January 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by

Exercise D-10 Record investment in bonds at a discount (LO D-5)

On January 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest receivable semiannually on June 30 and December 31 each year.

Assuming the market interest rate on the issue date is 8%, Dora will purchase the bonds for $159,869.

2. Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)

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Exercise D-10 Part 2 2. Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.) X Answer is complete but not entirely correct. No Date General Journal Debit Credit 1 January 01 Investments 175,000 X Cash 159,869 15,131 Bonds Payable X 2 June 30 Cash 6,125 Bonds Payable 270 Interest Revenue 6,395 3 December 31 Cash 6,125 Bonds Payable X 281 Interest Revenue 6,406