On February 1, 2023, Snappy Printing Inc. purchased 4% Telus bonds with a face value of $5,000

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On February 1, 2023, Snappy Printing Inc. purchased 4% Telus bonds with a face value of $5,000 for $4,900 (including transaction fees of $50) as a non-strategic investment. Interest is paid quarterly beginning May 1, 2023. The bonds mature February 1, 2030. Record the entries on February 1 and May 1 using the amortized cost method as management has the intent to hold the bonds to maturity. Assume the market interest rate is 4.25%.

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Fundamental Accounting Principles Volume 2

ISBN: 9781260881332

17th Canadian Edition

Authors: Kermit D. Larson, Heidi Dieckmann, John Harris

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