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The Bradford Company issued 13% bonds, d. January 1, 2024 to Saxton-Bose Corporation

The Bradford Company issued 13% bonds, d. January 1, 2024 to Saxton-Bose Corporation

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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The Bradford Company issued 13% bonds, dated January 1, with a face amount of $80 million on January 1, 2024 to Saxton-Bose Corporation. • The bonds mature on December 31, 2033 (10 years). • For bonds of similar risk and maturity, the market yield is 14% • Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2024, interest revenue on June 30, 2024 and interest revenue on December 31, 2024 (at the effective rate). Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
Transcribed Image Text:The Bradford Company issued 13% bonds, dated January 1, with a face amount of $80 million on January 1, 2024 to Saxton-Bose Corporation. • The bonds mature on December 31, 2033 (10 years). • For bonds of similar risk and maturity, the market yield is 14% • Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2024, interest revenue on June 30, 2024 and interest revenue on December 31, 2024 (at the effective rate). Note: Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Use tables, Excel, or a financial calculator. (FV of $1. PV of $1, FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1)
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