Question
Suppose Elliot Brothers purchases $600,000 of 4.5% annual bonds of Whitmore Corporation at face value on January 1, 2018. These bonds pay interest on June
Suppose Elliot Brothers purchases $600,000 of 4.5% annual bonds of Whitmore Corporation at face value on January 1, 2018. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2021. Elliot intends to hold the Whitmore bond investment until maturity. 1. Journalize Elliot Brothers's transactions related to the bonds for 2018. Hint: purchase of investment; receiving cash interest every six months 2. Journalize the entry required on the Whitmore bonds maturity date. (Assume the last interest payment has already been recorded.)
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