Question: Can someone please help me fill in the rest? :) The Bradford Company issued 11% bonds, dated January 1, with a face amount of $50
The Bradford Company issued 11% bonds, dated January 1, with a face amount of $50 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 13%. Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Saxton-Bose on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2021 (at the effective rate). (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Credit 1 Date General Journal January 01, 2021 Investment in bonds Discount on investment in bonds Cash Debit 50,000,000 OOO 2 June 30, 2021 2,750,000 Cash Discount on investment in bonds Interest revenue 3 2,750,000 December 31, 201 Cash Discount on investment in bonds Interest revenue O
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
