Business, 11.03.2020 23:26 nehakarakkattu
On January 1, 2021, SteveCo purchased $100,000 of Clear Company bonds at a premium of $8,000. The Clear bonds pay 8% interest but were purchased when the market interest rate was 7% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. SteveCo accounts for the bonds as a held-to-maturity investment, and uses the effective interest method. In SteveCo's December 31, 2021, journal entry to record the second period of interest, SteveCoRupar would record a credit to interest revenue of:
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On January 1, 2021, SteveCo purchased $100,000 of Clear Company bonds at a premium of $8,000. The Cl...
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