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On January 1, 2025. Larkspur Company purchased 8% bonds having a maturity value of $360.000 for $390.329.57. The bonds provide the bondholders with a
On January 1, 2025. Larkspur Company purchased 8% bonds having a maturity value of $360.000 for $390.329.57. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. Larkspur Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Date 1/1/25 $ 1/1/26 1/1/27 1/1/28 1/1/29 1/1/30 Cash Received 8% Bonds Sold to Yield 6% Interest Revenue $ Premium Amortized $ Carrying Am of Bonds C Prepare the journal entry to record the interest revenue and the amortization at December 31, 2025. (List all debit entries before credit entries. 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 O for the amounts. Round answers to 2 decimal places, e.g. 1.225.25) Date Account Titles and Explanation Dec. 31, 2025 Debit Credit Prepare the journal entry to record the interest revenue and the amortization at December 31, 2026. (List all debit entries before credit entries. 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 O for the amounts. Round answers to 2 decimal places, e.g. 1.225.25) Date Dec. 31. 2026 Account Titles and Explanation Debit Credit
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