On January 1, 2025, Bridgeport Company purchased at par 7% bonds having a maturity value of $370,000. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. The bonds are classified in the held-to- maturity category. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest revenue on December 31, 2025. (c) Prepare the journal entry to record the interest received on January 1, 2026. (List all debit entries before credit entries. 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 O for the amounts.) No. (a) (b) (c) Date Account Titles and Explanation Debit Credit

On January 1, 2025, Bridgeport Company purchased at par 7% bonds having a maturity value of $370,000. They are dated January 1, 2025, and mature January 1, 2030, with interest received on January 1 of each year. The bonds are classified in the held-to- maturity category. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the journal entry to record the interest revenue on December 31, 2025. (c) Prepare the journal entry to record the interest received on January 1, 2026. (List all debit entries before credit entries. 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 O for the amounts.) No. (a) (b) (c) Date Account Titles and Explanation Debit Credit

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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