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Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return. Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) NO. Account Titles and Explanation Debit Credit

Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return. Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) NO. Account Titles and Explanation Debit Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Company purchased, on January 1, 2017, as a held-to-maturity investment, $77,000 of the 9%, 5-year bonds of Chester Corporation for $71,309, which provides an 11% return.

Prepare Blue’s journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 1,225. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

NO. Account Titles and Explanation Debit Credit
       
       
       
       

 

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