Question: Suppose Donahue Brothers purchases 500 000 of 6 annual bonds

Suppose Donahue Brothers purchases $ 500,000 of 6% annual bonds of Clarkson Corporation at face value on January 1, 2014. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2018. Donahue in-tends to hold the Clarkson bond investment until maturity.

1. Journalize Donahue Brothers’ transactions related to the bonds for 2014.
2. Journalize the entry required on the Clarkson bonds maturity date. (Assume the last interest payment has already been recorded.)

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  • CreatedJanuary 16, 2015
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