Question: On October 1, 2020, Complex Company purchased a 12% face amount bond issue for excluding accrued interest to be held as financial asset at

On October 1, 2020, Complex Company purchased a 12% face amount bond issue for excluding accrued interest to be held as financial asset at amortized The date of the bonds is February 1, 2020 and the interest is payable semiannually On February I and August 1. The bonds mature annually at the rate of PI.OOO,OOO on February 1, 2020 and every February 1 thereafter. Required: a. Prepare a schedule of amortization following the bond outstanding method. b. Prepare journal entries for 2020 and 2021.

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