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On January 1, a company purchased 6%, 15-year corporate bonds for $66,166,472 as an investment. The bonds have a face amount of $80 million and are priced to yield 8%. Interest is paid semiannually. Pronare

On January 1, a company purchased 6%, 15-year corporate bonds for $66,166,472 as an investment. The bonds have a face amount of $80 million and are priced to yield 8%. Interest is paid semiannually. Pronare

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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On January 1, a company purchased 6%, 15-year corporate bonds for $66,166,472 as an investment. The bonds have a face amount of $80 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Complete this question by entering your answers in the tabs below. Amort Table Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Round your intermediate calculations to the nearest dollar amount. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Period-End General Journal January 1 June 30 December 31 Cash Interest Received Bond Interest Revenue Discount Amortization Amers Table < Prev Carrying Value $ 66,166,472 5 of 12 General Journal > ⠀ Next >
Transcribed Image Text:On January 1, a company purchased 6%, 15-year corporate bonds for $66,166,472 as an investment. The bonds have a face amount of $80 million and are priced to yield 8%. Interest is paid semiannually. Prepare a partial amortization table at the effective interest rate on June 30 and December 31. Prepare the journal entries necessary to record revenue at the effective interest rate on June 30 and December 31. Complete this question by entering your answers in the tabs below. Amort Table Prepare a partial amortization table at the effective interest rate on June 30 and December 31. (Round your intermediate calculations to the nearest dollar amount. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.) Period-End General Journal January 1 June 30 December 31 Cash Interest Received Bond Interest Revenue Discount Amortization Amers Table < Prev Carrying Value $ 66,166,472 5 of 12 General Journal > ⠀ Next >
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