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On July 1, 2024, Monty Corporation, a private company, purchased $369,600 of six-year, 5% Star Corporation bonds for $390,000. The bonds pay interest each June
On July 1, 2024, Monty Corporation, a private company, purchased $369,600 of six-year, 5% Star Corporation bonds for $390,000. The bonds pay interest each June 30 . The bonds were purchased to earn interest and the market interest rate at the time of purchase was 4%. The company uses the effective-interest method to amortize any premium or discount on debt security investments. Prepare the required journal entries on July 1 and December 31, 2024, and June 30, 2025. (Record entries in the order displayed in manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) 2025
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