On April 30, 2020, Cana Corp. paid 97.50 for 4 percent bonds of Starr Limited as an
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On April 30, 2020, Cana Corp. paid 97.50 for 4 percent bonds of Starr Limited as an investment. Maturity value of the bonds is $100,000 at October 31, 2025; they pay interest on April 30 and October 31. Cana Corp.’s year-end is December 31. Cana Corp. plans to hold the bonds until they mature. Using the straight-line method of amortizing the discount, journalize all transactions on the Starr bonds for 2020 in Cana’s records. Round all amounts to the nearest dollar.
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On April 30 2020 Debit Cash 98000 Credit Investment in Bonds Payable 98000 On October 31 2020 Debit ...View the full answer
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