Question: On February 1 2014 Shinko Inc purchased 4 Telus bonds
On February 1, 2014, Shinko Inc. purchased 4% Telus bonds with a face value of $5,000 at 98 as a non-strategic investment. Interest is paid quarterly beginning May 1, 2014. The bonds mature February 1, 2024. Record the entries on February 1 and May 1 using the amortized cost method. Assume the market interest rate is 4.25%.
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