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PLEASE SOLVE THE LAST PART, THE JOURNAL ENTRIES! On January 1,2025 , Pina Company acquires $340,000 of Spiderman Products, Inc., 9% bonds at a price
PLEASE SOLVE THE LAST PART, THE JOURNAL ENTRIES!
On January 1,2025 , Pina Company acquires $340,000 of Spiderman Products, Inc., 9% bonds at a price of $323,383. Interest is received on January 1 of each year, and the bonds mature on January 1, 2028. The investment will provide Pina Company a 11% yield. The bonds are classified as held-to-maturity. (a) Your answer is correct. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method. (Round answers to 0 decimal places, e.g. 1,225.) Your answer is correct. Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective-interest method. (Round answers to 0 decimal places, e.g. 1,225.) Your answer is partially correct. (c) Prepare the journal entry for the interest revenue and discount amortization under the straight-line method at December 31, 2026. (d) Prepare the journal entry for the interest revenue and discount amortization under the effective-interest method at December 31, 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal places, e.g. 1,225.)Step by Step Solution
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