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need help with b and c. c) Prepare the journal entry to record the cognition of fair value for 2018. On January 1, 2017, Flint,
need help with b and c.
c) Prepare the journal entry to record the cognition of fair value for 2018.
On January 1, 2017, Flint, Inc. purchased 9% bonds having a maturity value of $472,000 for $487,633.44. The bonds provide the bondholders with an 8% yield. The bonds are dated January 1, 2017, and mature January 1, 2021, with interest receivable on January 1 of each year. Flint, Inc. uses the effective interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2017 $482,400 2018 $483,300 2019 $478,600 2020 $472,000Step by Step Solution
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