Journal entries required on the date of acquisition and at the end of the first year after acquisition. Given information: Company SL bought 5% bonds as a held-to-maturity investment on January 1 Par value of $2,960,000 The market rate of interest is 10% The company bought the bonds for $2,315,421 The fair value of the bond is $2,185,455 The maturity period of 6 years

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Chapter 16, Problem 16.1BE

To determine

To find: Journal entries required on the date of acquisition and at the end of the first year after acquisition.

Given information:

Company SL bought 5% bonds as a held-to-maturity investment on January 1

Par value of $2,960,000

The market rate of interest is 10%

The company bought the bonds for $2,315,421

The fair value of the bond is $2,185,455

The maturity period of 6 years

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