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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 three-year, $100 face value, 7% bond paying $85.83. At this price, the bond will yield a 13% 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 t 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 0 for the amounts. List all deb entries before credit entries. Round answers to 2 decimal places, e.g.52.75.)
\table[[Date,Account Titles and Explanation,Debit,Credit],[Day 1,Bond Investment at Amortized Cost,,],[,Cash,,],[\table[[End of],[Year 1]]],[,Bond Investment at Amortized Cost,,],[\table[[End of],[Year 2]],,,]]
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