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Wedge Inc. is planning to purchase $283,000 worth of 6-year bonds issued by George Company, a privately traded company, on January 1, 2023. The interest
Wedge Inc. is planning to purchase $283,000 worth of 6-year bonds issued by George Company, a privately traded company, on January 1, 2023. The interest rate of the bonds is 5% annually; payments are made semi-annually on June 30 and December 31 every year. Wedge Inc. has a December 31 year-end and plans to hold the bonds until maturity.
Required Prepare journal entries for the bonds acquisition, the first interest payment and retirement of the bonds on January 1, 2029.
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