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INVESTOR Corp. was interested in investing in bonds and, on 01/01/2013 purchased 10% bonds dated January 1, 2013. These bonds had a face amount of
INVESTOR Corp. was interested in investing in bonds and, on 01/01/2013 purchased 10% bonds dated January 1, 2013. These bonds had a face amount of $12 million, pay interest on 06/30 and 12/3l, and mature in 10 years. For bonds of similar risk and maturity, the market yield is 12%. INVESTOR Corp. uses the effective interest method. 1. Make INVESTOR Corp.'s entry to record the bond purchase? 2. Make INVESTOR Corp.'s entry on 06/30/2013 and on 12/31/2013 to record interest? 3. How would INVESTOR Corp report the bond investment on it's 12/21/2013 financial statements
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