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On January 1, 2015, Randy Incorporated purchased of $500,000 of 20 year, 10% bonds when the market rate of interest was 8% Interest is to
On January 1, 2015, Randy Incorporated purchased of $500,000 of 20 year, 10% bonds when the market rate of interest was 8% Interest is to be paid on June 30 and December 31 of each year. 1.Prepare the journal entry to record the purchase of the debt security classified as held to maturity. 2. Prepare the journal entry to record the receipt of the first two interest payments, assuming that Randy accounts for the debt security as held to maturity and uses the effective-interest method.
On January 1, 2015, Randy Incorporated purchased of $500,000 of 20 year, 10% bonds when the market rate of interest was 8% Interest is to be paid on June 30 and December 31 of each year.
1.Prepare the journal entry to record the purchase of the debt security classified as held to maturity.
2. Prepare the journal entry to record the receipt of the first two interest payments, assuming that Randy accounts for the debt security as held to maturity and uses the effective-interest method.
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Financial Accounting
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
3rd edition
9780077506902, 78025540, 77506901, 978-0078025549
