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Entries for Held-to-Maturity Securities On January 1 2013 Hi and Lois Company purchased 12 % bond s having a maturity value

(Entries for Held-to-Maturity Securities) On January 1, 2013, Hi and Lois Company purchased

12 bond havin maturit valu $300,00 fo $322,744.44 Th bond ovid th bondholder with

10% yield. They dated January 1, 2013, and matu January 1, 2018, with inte est eceivable December

31 of each yea . Hi and Lois Company uses the e fective-inte est method to allocate unamortized discount

or p emium. The bonds a e classified in the held-to-maturity categor .

 

Instructions

(a) epa e the journal entry at the date of the bond pu chase.

(b) epa e a bond amortization schedule.

 

 

(c) Prepare the journal entry to record the interest received and the amortization for 2013.

(d) epa e the journal entry to eco d the inte est eceived and the amortization for 2014.

Jun 18 2020 View more View Less

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