Question: ment FULL SCREEN PRINTER VERSION 4 BACK NEXT Question 13 On August 1, 2020, Franklin Inc. acquired $120,000 (face value) 10% bonds of Machu Corporation

ment FULL SCREEN PRINTER VERSION 4 BACK NEXT Question 13 On

ment FULL SCREEN PRINTER VERSION 4 BACK NEXT Question 13 On August 1, 2020, Franklin Inc. acquired $120,000 (face value) 10% bonds of Machu Corporation at 102 plus accrued interest. The bonds were dated May 1, 2020, and mature on April 30, 2023, with interest payable each October 31 and April 30. The bonds will be held to maturity. Assuming the amortized cost model is used, the entry to record the purchase of the bonds on August 1, 2020 is O Bond Investment at Amortized Cost Premium on Bonds Cash 120,000 5,400 125,400 125,400 125,400 O Bond Investment at Amortized Cost Cash O Bond Investment at Amortized Cost Interest Receivable Cash 122,400 3,000 125,400 O Bond Investment at Amortized Cost Interest Revenue Cash 125,400 3,000 122,400

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