Question: On January 1 , 2 0 2 4 , Navy Corporation issued $ 9 5 , 0 0 0 of 8 % bonds. Interest on

On January 1,2024, Navy Corporation issued $95,000 of 8% bonds. Interest on these bonds is payable on June 30 and December 31 of each year and matures in 3 years on January 1,2027. Army Corporation purchases the entire bond issue investment when the market interest rate for bonds of similar risk and maturity is 10%. The fair value of the Treasury bonds is $96,000 on December 31,2024.
Required:
Calculate the purchase price of the bond
Prepare the journal entry for the purchase of the bonds by Army Corporation
Prepare the journal entry for the first interest payment on June 30,2024
Prepare the journal entries for year-end December 31,2024, for interest and fair value adjustments.
On January 1 , 2 0 2 4 , Navy Corporation issued

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