Question: Can you please help with this problem... This is all the information that I am given and I can't figure it out. When a bond
Can you please help with this problem... This is all the information that I am given and I can't figure it out.
•When a bond is purchased at face value, this will result in a debit to Investment in Bonds, as cash is being given to someone else or company based on a pre-determined agreement.
B) The interest income is calculated based on the Par value of $100,000 at 8% interest.
Hint: Interest is paid semiannually
C) The bond is redeemed. This will result as the opposite transaction that occurred in A when the Bond was originally recorded

11XABCDEF4.3 Recording Investment in Bonds - Long Term AssetDirections: Prepare journal entries based on the following informationa) Record the purchase of $100,000 bond, 8%, 5-year bondat par value with interest paid semiannuallyDateAccountDebitCreditIssueInvestment in BondsCashb) Record receipt of an interest payment4 DateAccountDebitCreditInterestCashInterest Income8 c) Record redemption of bond at maturity90 DateAccountDebitCredit1 Maturity CashInvestment in Bonds2324Problem 4.1Problem 4.2Problem 4.3Problem 4.4
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