Question
On November 1, 2022 Santana Corporation issued 7% $1,000 bonds, having a face value of $2,000,000, for $2,064,750 plus accrued interest. The bonds are dated
On November 1, 2022 Santana Corporation issued 7% $1,000 bonds, having a face value of $2,000,000, for $2,064,750 plus accrued interest. The bonds are dated January 1, 2022 and mature on January 1, 2052. The issuance of the bonds was delayed for unspecified reasons. Interest is payable semiannually on June 30 and December 31 and Santana uses the straight-line method of amortization. On July 1, 2023, Santana purchased 300 bonds on the open market for 104.6. Required: Record the bond-related entries on the books of Santana Corp. on the following dates: A. November 1, 2022 B. December 31, 2022 C. June 30, 2023 D. July 1, 2023
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