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On January 1, a company purchased 4%, 15-year corporate bonds for $49,062,045 as an investment. The bonds have a face amount of $75 million and
On January 1, a company purchased 4%, 15-year corporate bonds for $49,062,045 as an investment. The bonds have a face amount of $75 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31.
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