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Question 5 of 12 < > Current Attempt in Progress 0.27/1 On January 1, 2020, Bramble Company purchased 11% bonds, having a maturity value
Question 5 of 12 < > Current Attempt in Progress 0.27/1 On January 1, 2020, Bramble Company purchased 11% bonds, having a maturity value of $289,000 for $311,481.74. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bramble Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $309,400 2023 $299,100 2021 $297,900 2024 2022 $296,900 $289,000 (a) Prepare the journal entry at the date of the bond purchase. (b) (c) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020. Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. 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.) No. (a) Date Jan. 1.2020 Account Titles and Explanation Debt Investments Debit 289000 W Credi
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