Question
On January 1, Splash City issues $440,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each
On January 1, Splash City issues $440,000 of 7% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. T. Bone Investment Company (TBIC) purchases all of the bonds in a private placement. Assuming the market interest rate on the issue date is 6%, TBIC will purchase the bonds for $483,121. 2. Record the purchase of the bonds by TBIC on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole dollar amount.)
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