Question: (Note: This is a variation of E 143 modified to consider the investors perspective.) The Bradford Company sold the entire bond issue described in the

(Note: This is a variation of E 14–3 modified to consider the investor’s perspective.) The Bradford Company sold the entire bond issue described in the previous exercise to Saxton-Bose Corporation.

Required:
1. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2021.
2. Prepare the journal entry to record interest revenue on June 30, 2021 (at the effective rate).
3. Prepare the journal entry to record interest revenue on December 31, 2021 (at the effective rate).

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1 January 1 2021 Interest 4000000 x 1146992 45879680 Principal 80000000 x 031180 24944000 Present value price of the bonds 70823680 5 80000000 Present value of an ordinary annuity of 1 n 20 i 6 Table ... View full answer

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