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Question 2 (CLO- S1, Marks 4) On January 1, 2014, Dubai Corporation purchased 12% bonds, having a maturity value of $600,000, for $645,489. The bonds
Question 2 (CLO- S1, Marks 4) On January 1, 2014, Dubai Corporation purchased 12% bonds, having a maturity value of $600,000, for $645,489. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2014, and mature January 1, 2019, with interest receivable December 31 of each year. Dubai Corporation uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Instructions (a) Prepare the journal entry on the date of the bond purchase (b) Prepare a bond amortization schedule. (2) Prepare the journal entry to record the interest received and the amortization for all the years
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