4. Flower Co. purchased $1,000,000 of 8%, 5-year bonds from Ritter, Inc. on May 1, 2012,...

Transcribed Image Text:

4. Flower Co. purchased $1,000,000 of 8%, 5-year bonds from Ritter, Inc. on May 1, 2012, plus accrued interest with interest payable on July 1 and January 1. The bonds sold for $1,041,580 at an effective interest rate of 7%. What entry should Fowler make to record the purchase of the bonds on May 1, 2012? 4. Flower Co. purchased $1,000,000 of 8%, 5-year bonds from Ritter, Inc. on May 1, 2012, plus accrued interest with interest payable on July 1 and January 1. The bonds sold for $1,041,580 at an effective interest rate of 7%. What entry should Fowler make to record the purchase of the bonds on May 1, 2012?

Answer rating: 100% (QA)

Journal entry Sno Accounts title ... View the full answer