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On January 2014 Roosevelt Company purchased 12% bonds having a maturity value of $500000 for $537907.40 The bonds p r ovide the bondholders with a 10% yield

On January 1, 2014, Roosevelt Company purchased 12% bonds, having a maturity value of

$500,000, for $537,907.40. The bonds ovide the bondholders with 10% yield. They dated January 1,

2014, and matu January 1, 2019, with inte est eceivable December 31 of each yea Roosevelt’s business

model is to hold these bonds to collect contractual cash flows.

 

Instructions

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

(b) epa e a bond amortization schedule.

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

(d) epa e the journal entry to eco d the inte est eceived and the amortization for 2015.

Jun 18 2020 View more View Less

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