Financial Accounting (12th Edition) (What's New in Accounting)
Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter E, Problem E.11S

(Learning Objective 5: Record a held-to-maturity bond investment and interest when issued at par) On January 1, 2018, Downtown Industries purchased $8,000 of 4% JMK bonds at a price of 100 (par). Downtown intends to hold the bonds until their maturity date of January 1, 2021. The bonds pay interest semiannually on each January 1 and July 1. Record the initial purchase of the bonds on January 1, 2018, and the receipt of the interest on the first interest payment date of July 1, 2018.

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Financial Accounting (12th Edition) (What's New in Accounting)

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