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On July 2, 2021, Corso Inc. purchased $610,000 of Bere Corp. 4% bonds at a price of 562,453 to yield a market interest rate of
On July 2, 2021, Corso Inc. purchased $610,000 of Bere Corp. 4% bonds at a price of 562,453 to yield a market interest rate of 5%. The bonds pay interest semi-annually on July 1 and January 1, and mature on July 1, 2031. Corso plans to hold this investment until it matures. At December 31, 2021, which is the year end for both companies, the bonds were trading at 93 (this means 93% of face value). (b) For Bere, the investee (issuer), record. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to O decimal places, e.g. 5,250. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) 1. the issue of the bonds on July 2, 2021, 2. the accrual of interest on December 31, 2021, 3. the payment of interest on January 1, 2022, and 4. the payment of interest on July 1, 2022. Date Account Titles and Explanation Debit Credit 2021 July 2 Dec. 31 2022 Jan. 1 July 1
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