Orange Co bought $10,000 7%, 4-year bonds on Jan. I from Kumquat Co. when the market...
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Orange Co bought $10,000 7%, 4-year bonds on Jan. I from Kumquat Co. when the market rate was 5%. Interest is paid semiannually on Jun. 30 and Dec. 31. Orange Co. plans to hold these bonds until maturity because they want to receive all of the interest payments. At 1/1/X1, the bonds were trading at $10,717. At 1/1/X5, the bonds were trading at $9,757. Record the necessary entries at the given dates. SHOW ALL WORK! 1/1/X1 6/30/X1 12/31/X1 6/30/X2 LUXS Now, assume that the bonds were called at 1/1/X3 at 105. Orange Co bought $10,000 7%, 4-year bonds on Jan. I from Kumquat Co. when the market rate was 5%. Interest is paid semiannually on Jun. 30 and Dec. 31. Orange Co. plans to hold these bonds until maturity because they want to receive all of the interest payments. At 1/1/X1, the bonds were trading at $10,717. At 1/1/X5, the bonds were trading at $9,757. Record the necessary entries at the given dates. SHOW ALL WORK! 1/1/X1 6/30/X1 12/31/X1 6/30/X2 LUXS Now, assume that the bonds were called at 1/1/X3 at 105.
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Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
Posted Date:
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