On January 1, 2019, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of

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On January 1, 2019, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2021. The investment will provide Morgan Company a 12% yield. The bonds are classified as held-for-collection.
Instructions
a. Prepare a 3-year schedule of interest revenue and bond discount amortization. (Round to nearest cent.)
b. Prepare the journal entry for the interest receipt of December 31, 2020, and the discount amortization.
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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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