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On January 1, 2017, Stellar Company purchased 12% bonds having a maturity value of $310,000 for $333,502.59. The bonds provide the bondholders with a 10%
On January 1, 2017, Stellar Company purchased 12% bonds having a maturity value of $310,000 for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017 and mature January 1, 2022 with interest receivable January 1 of each year. Stellar Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category Your answer is correct Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, eg. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation Dec. 31 2018
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