(a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest earned and interest received for 2025. (c) Prepare the journal entries to record the interest earned and interest received for 2026.
On July 1, 2025, Crane Corporation purchased at par 6% bonds having a maturity value of $268, 800. The bonds are dated July 1, On January 1, 2025, Bridgeport Company acquires $250, 000 of Spiderman Products, Inc., 9% bonds at a price of $231, 986. Interest is received on January 1 of each year, and the bonds mature on January 1, 2028. The investment will provide Bridgeport Company a 12% yield. The bonds are classified as held-to-maturity. 2025, and mature July 1, 2030, with interest payable on July 1 of each year. The bonds are classified in the held-to-maturity category, and the company does not use reversing entries. (a) Prepare the
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