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On January 1, 2017, Grouper Company purchased at par 8% bonds having a maturity value of $280,000. They are dated January 1, 2017, and mature
On January 1, 2017, Grouper Company purchased at par 8% bonds having a maturity value of $280,000. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category.
(a) | Prepare the journal entry at the date of the bond purchase. | |
(b) | Prepare the journal entry to record the interest revenue on December 31, 2017. | |
(c) | Prepare the journal entry to record the interest received on January 1, 2018. |
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