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Moroco Inc. a company that reports under ASPE, has an investment in bonds. The bonds have a face value of $500,000 and were purchased on
Moroco Inc. a company that reports under ASPE, has an investment in bonds. The bonds have a face value of $500,000 and were purchased on January 1. The market interest rate was 6% on date of purchase and the bonds pay interest at a rate of 7%. Interest payments are made every June 30 and December 31. The bonds mature five years from the date of purchase, on December 31. Which of the following journal entries records the acquisition of the bonds on January 1? Question 9 options: a) DR Investment in bonds 479,208 CR Cash 479,208 b) DR Investment in bonds 479,499 CR Cash 479,499 c) DR Investment in bonds 521,062 CR Cash 521,062 d) DR Investment in bonds 521,326 CR Cash 521,326
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