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Riverbed Corp. invested in a three - year, $ 1 0 0 face value, 7 % bond paying $ 8 5 . 8 3 .
Riverbed Corp. invested in a threeyear, $ face value, bond paying $ At this price, the bond will yield a return. Interest is payable annually. Riverbed uses the amortized cost model of accounting for investments. Prepare journal entries to record the initial investment, receipt of interest, and recognition of interest income in each of the years, and the maturity of the bond at the end of the third year. Credit account titles are automatically indented when the amount entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all deb entries before credit entries. Round answers to decimal places, eg
tableDateAccount Titles and Explanation,Debit,CreditDay Bond Investment at Amortized Cost,,Cash,,tableEnd ofYear Bond Investment at Amortized Cost,,tableEnd ofYear
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