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Business, 26.03.2021 05:30 justicejesusfreak

On January 1, 2019, Wildcat Company purchased $100,000 of 6% bonds at face value. The market rate of interest was 8% bonds of similar risk and maturity. The Company paid $90,000 for the bonds. The bonds are to be held to maturity. The bonds pay interest semiannually on July 1 and January 1. Required: (1.) Prepare the appropriate journal entry to record the investment in the bonds. (2.) Record the first interest payment at the effective (market) rate.

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On January 1, 2019, Wildcat Company purchased $100,000 of 6% bonds at face value. The market rate of...
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