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On January 1, 2024, the Peace Co. issued a 3-year bond to the Pink Co. The bond pays interest, semiannually, on June 30th and December
On January 1, 2024, the Peace Co. issued a 3-year bond to the Pink Co. The bond pays interest, semiannually, on June 30th and December 31st. Below is a partial amortization table related to the bond. Date Interest Paid Interest Reported Outstanding Balance 1/1/24 $666,633 6/30/24 $42,000 $46,664 12/31/24 $42,000 $46,991 6/30/25 $42,000 $47,340 $5,340 $681,628 12/31/26 $42,000 $700,000 On December 31, 2024, the journal entry prepared by the Investor includes a: Question 4 options: a) Debit to Bond Payable, a debit to Interest Expense and a credit to Cash. b) Debit to Bond Receivable, a credit to Cash and a credit to Interest Revenue. c) Debit to Cash, a credit to Bond Receivable and a credit to Interest Revenue. d) Debit to Discount on Bond Investment, a debit to Cash and a credit to Interest Revenue. e) Debit to Interest Expense, a debit to Premium on Bond Payable and a credit to Cash
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