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Please show step by step how you got the numbers for the entries. On January 1, 2020, Sponsler Corporation purchased $1,000,000, 7%, 10-year bonds at
Please show step by step how you got the numbers for the entries.
On January 1, 2020, Sponsler Corporation purchased $1,000,000, 7%, 10-year bonds at face value. Interest is paid semiannually on June 30 and December 31. The company classifies the investment as available for sale. At the end of 2020, market interest rates for similar bonds is 7%. Prepare the three required 2020 journal entries for the bond investment. On July 1, 2021 Sponsler sells $200,000 of face value bonds for $195,000. At the end of 2020, market interest rates for similar bonds is 10%. Prepare the four required 2021 journal entries for the bond investment. On January 1, 2020, Sponsler Corporation purchased $1,000,000, 7%, 10-year bonds at face value. Interest is paid semiannually on June 30 and December 31. The company classifies the investment as available for sale. At the end of 2020, market interest rates for similar bonds is 7%. Prepare the three required 2020 journal entries for the bond investment. On July 1, 2021 Sponsler sells $200,000 of face value bonds for $195,000. At the end of 2020, market interest rates for similar bonds is 10%. Prepare the four required 2021 journal entries for the bond investmentStep by Step Solution
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