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On 1/01/2022, Patton Company paid $846,226 to purchase $900,000 10% bonds of George Company. The bonds pay interest each December 31. The effective yield on
On 1/01/2022, Patton Company paid $846,226 to purchase $900,000 10% bonds of George Company. The bonds pay interest each December 31. The effective yield on the bonds is 11%. Patton Company uses the effective-interest method of amortization and plans to hold these bonds to maturity. Prepare the journal entry for the purchase of the bonds and the first two interest receipts.
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