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XYZ Bonds dated July 1. 2013. Tan's management has the positive intent and ability to hold the bonds until maturity. The market rate for bonds
XYZ Bonds dated July 1. 2013. Tan's management has the positive intent and ability to hold the bonds until maturity. The market rate for bonds of similar risk and maturity was 8%. Tan paid $ 300 million for the bonds. Tan will receive interest semiannually on June 30 and December 31. The effective interest rate is being applied throughout.
a. record the entry for XYZ payment of interest on June 30
b. what amount will be shown in its June 30 Income Statement for quarter 2?
c. record the entry for the issueing of bonds on July 1 by XYZ
d. Record the entry to record payment of interest on Dec 31
e what will XYZ report on its Balance sheet on june 30
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