On January 1, 2020, GK Ranch Co. sells 500,000 of its $1,000 face value, 15 year, 10% bonds. The bonds pay interest on January 1 and July 1. Baskin Inc. purchases 36,000 of these bonds on January 1, 2020 and considers these bonds available for sale. A schedule of market interest rates on certain dates throughout the 15-year life of the bonds is as follows:

Date	Market Interest Rate
January 1, 2020	12%
December 31, 2020	11%
December 31, 2021	12%
December 31, 2022	10%
December 31, 2023	9%
December 31, 2024	8%
December 31, 2025	8%

Required:

2. Record the adjusting journal entry/entries relating to the bonds for Baskin Inc. on December 31, 2020. 

Answer rating: 100% (QA)

ANSWER ATTACHED IMAGE Baskin nc purchased the Bonds for sal... View the full answer