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just meed the part that is red Current Atten Sarasota Corp. invested in a three-year $100 face value 9% bond, paying $95.11. At this price,
just meed the part that is red
Current Atten Sarasota Corp. invested in a three-year $100 face value 9% bond, paying $95.11. At this price, the bond will yield a 11% return. Interest is payable annually. Bond Discount Amortization Table Cash Received Interest Income Bond Discount Amortization Amortized Cost of Bond $ 95 11 $ 10.46 $ 1.46 96,50 IN 10.62 162 982 10.80 180 100 27 3188 $ 4.88 Prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the three years, and the maturity of the bond at the end of the third year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter o for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Day 1 Bond Investment at Amartired Cost 95.11 Cash 95.11 End of Year 1 Bond Investment at Amortized Costi 1.62 Interest income 10.62 End of Year 2 Cash Blond investment at Amortized Cost 16 Interest Income 02 End of Year 2 Cash Bond Investment at Amortized Cost 162 Interest Income 1062 End of Year 3 Cash Bond Investment at Amortized Cost 1.62 Interest Income 10.62 (To record interest collected) Cash 1178.35 Bond Investment at Amortized Cost 1178.35 (To record maturity of bond investment) Step by Step Solution
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