Prepare the journal entry at the date of the bond purchase.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Grouper Company purchased 12% bonds having a maturity value of $350,000, for $376,535.18. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Grouper Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.
 
 
Prepare the journal entry at the date of the bond purchase.
 
Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)
 
Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.
 
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