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On January 1, 2021, Flounder Inc. purchased a 20-year bond to earn interest with a face value of $420,000. Flounder has a December 31 year
On January 1, 2021, Flounder Inc. purchased a 20-year bond to earn interest with a face value of $420,000. Flounder has a December 31 year end. The bond was issued on January 1, 2021 by Zhou Appliances Ltd. with a 5.60% stated interest rate, when the market interest rate was 6.1%. The cash received at the issuance of the bond was $395,924. Interest is payable semi-annually on July 1 and January 1. Zhou has a December 31 year end. Also, on January 1, 2021 Flounder Inc. purchased a 60-day treasury bill with a maturity value of $35,100. They paid $33,610. (a) Record all of the entries on the books of Flounder Inc. from January 1, 2021 to January 1, 2022 inclusive. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 2 decimal places, e.g. 52.75.) Credit Debit Date Account Titles and Explanation Jan. 1, 2021 Investment in Associate Cash DENADO
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