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On January 1, 2020, Swifty Company purchased 9% bonds having a maturity value o 1$370,000, for $400,34296. The bonds provide the bondholders with a 7%
On January 1, 2020, Swifty Company purchased 9% bonds having a maturity value o 1$370,000, for $400,34296. The bonds provide the bondholders with a 7% yleld. Theyare dated January 1,2020, and mature January 1, 2025, with interest received on Jaruary 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (a) Prepare the journal entry at the dote of the bond purchase. (Enter answers to 2 decimal pioces, ey, 2,525.25. Credit occount titles are outomotically indented when amount is entered. Do not indent manually. If no entry is required, seiect "No Entry" for the account tities and enter O for the amourits)
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