Question
On April 1 Mega Bank purchased $40,000, 5% bonds at a discount as a long-term investment. The purchase price was $37,024.51 for an effective interest
On April 1 Mega Bank purchased $40,000, 5% bonds at a discount as a long-term investment. The purchase price was $37,024.51 for an effective interest rate of 6%.
Provide the April 1 journal entry to purchase the bonds, the interest payment collected on October 1 and an adjusting entry for accrued interest on December 31.
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Total Quality Auditing
Authors: Amanda Jo Erven
1st Edition
1733784306, 978-1733784306
