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(c) Prepare the journal entry for the interest revenue and the discount amortization under the straight-line method at December 31, 2021. 12/31/21 12/31/21 Debit (d) Prepare the journal entry for the interest revenue and the discount amortization under the effective-interest method at December 31, 2021. to Credit Debit Credit

(c) Prepare the journal entry for the interest revenue and the discount amortization under the straight-line method at December 31, 2021. 12/31/21 12/31/21 Debit (d) Prepare the journal entry for the interest revenue and the discount amortization under the effective-interest method at December 31, 2021. to Credit 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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(c) Prepare the journal entry for the interest revenue and the discount amortization under the straight-line method at December 31, 2021. 12/31/21 12/31/21 Debit (d) Prepare the journal entry for the interest revenue and the discount amortization under the effective-interest method at December 31, 2021. to Credit Debit Credit
Transcribed Image Text:(c) Prepare the journal entry for the interest revenue and the discount amortization under the straight-line method at December 31, 2021. 12/31/21 12/31/21 Debit (d) Prepare the journal entry for the interest revenue and the discount amortization under the effective-interest method at December 31, 2021. to Credit Debit Credit
On January 1, 2020, Cage Company acquired bonds of Rand Products, Inc. Additional information concerning the bond investment follows. Par value of bonds acquired Acquisition cost Stated rate of bonds Expected yield for Cage Company $ 250,000 $ 231,986 9% 12% The interest is received on January 1 of each year, and the bonds mature January 1, 2023. The bonds are classified as held-to-maturity.
Transcribed Image Text:On January 1, 2020, Cage Company acquired bonds of Rand Products, Inc. Additional information concerning the bond investment follows. Par value of bonds acquired Acquisition cost Stated rate of bonds Expected yield for Cage Company $ 250,000 $ 231,986 9% 12% The interest is received on January 1 of each year, and the bonds mature January 1, 2023. The bonds are classified as held-to-maturity.
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