Question: Question 3: AC Method Bonds and effective interest rate method On January 1st, 2011, ABC Inc. purchased a $1,000 bond which 30th and December 31st

Question 3: AC Method Bonds and effective interest rate method On January 1st, 2011, ABC Inc. purchased a $1,000 bond which 30th and December 31st each year at the stated rate of 8% per annum. The market rate was January 1st, 2011. The bond matures on December 31st, 2015. There is no active market tor so ABC will account or it using the amortized cost method. a) How much was the bond purchased for (ignore brokerage fees)? b) Provide all required journal entries for 2011. pays interest semi-annually on June 6% on the bond, Calculations PR Debit Date Explanation Credit

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