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how do I do this? On January 1, 2020. Sarasota Company purchased $370,000, 8% bonds of Aguirre Co. for $341,429. The bonds were purchased to
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On January 1, 2020. Sarasota Company purchased $370,000, 8% bonds of Aguirre Co. for $341,429. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Sarasota Company uses the effective interest method to amortize discount or premium. On January 1, 2022, Sarasota Company sold the bonds for $343,034 after receiving interest to meet its liquidity needs. Amortization Effective-Interest Method Bonds Purchased to Yield Interest Receivable Or Cash Received Interest Revenue Bond Discount Amortization Date 1/1/20 $ $ $ 7/1/20 1/1/21 7/1/21 1/1/22 7/1/22 1/1/23 7/1/23 1/1/24 7/1/24 1/1/25 02 $ Total S Amortization-Effective-Interest Method Bonds Purchased to Yield erest Receivable Or Cash Received Interest Revenue Bond Discount Amortization Carrying Amount of Bonds $ $ $ $ id Prepare the joumal entries to record the semiannual intereston (1) July 1, 2020, and (2) December 31, 2020. (d) If the fair value of Aguirre bonds is $345.034 on December 31, 2021. prepare the necessary adjusting entry (Assume the fair value adjustment balance on December 31, 2020, is a debit of $3,257) le) Prepare the joumal entry to record the sale of the bonds on January 1, 2022 (Round answers to decimof places, eg 2500 Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, seled "No Entry for the account titles and enter for the amounts: Date Account Titles and Explanation Debit Credi July 2020 Dec 31, 2020 DUDDDDDDDDD
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