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On January 1 2017 Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1 2017 and mature January 1 2022 with interest received on January


On January 1, 2017, Dagwood Company purchased at par 6% bonds having a maturity value of $300,000. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category.

Instructions

(a) Prepare the journal entry at the date of the bond purchase.

(b) Prepare the journal entry to record the interest revenue on December 31, 2017.

(c) Prepare the journal entry to record the interest received on January 1, 2018.

Apr 01 2020 View more View Less

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