Question: Suppose Hale and Sons purchases 800 000 of 5 annual

Suppose Hale and Sons purchases $ 800,000 of 5% annual bonds of McPhee 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. Hale intends to hold the McPhee bond investment until maturity.

1. Journalize Hale and Sons’ transactions related to the bonds for 2014.
2. Journalize the entry required on the McPhee bonds maturity date. (Assume the last interest payment has already been recorded.)

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  • CreatedJanuary 16, 2015
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