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Recording and Reporting HTM and AFS Securities: Discount, Semiannual, Effective Interest On January 1 of Year 1, Pitt Company acquired the following bonds, which Pitt
Recording and Reporting HTM and AFS Securities: Discount, Semiannual, Effective Interest On January 1 of Year 1, Pitt Company acquired the following bonds, which Pitt intends to hold to maturity. The bonds pay interest semiannually on June 30 and December 31 . Premiums and discounts are amortized using the effective interest method and a market rate of 6%. The fair value of the Required a. Provide the entry to record the purchase of the investment on January 1 of Year 1. b. Provide the entry on June 30 of Year 1 to record the receipt of interest. - Note: Round your answers to the nearest whole dollar. c. Provide the entry on December 31 of Year 1 to record the receipt of interest and the adjustment to fair value (if required). The fair value of the bonds was $330,000 on December 31 of Yed - Note: Round your answers to the nearest whole dollar. - Note: If a journal entry isn't required on any of the dates shown, select "N/ADebit" and "N/ACredit" as the account names and leave the Dr. and Cr. answers blank (zero)
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