Question: Question 7 (18 points) On April 1, 2018, FTL Corp purchased $500,000 of 6% bonds for $525,200 plus accrued interest as an available-for-sale security. Interest

Question 7 (18 points) On April 1, 2018, FTL Corp purchased $500,000 of 6% bonds for $525,200 plus accrued interest as an available-for-sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2023. a) Prepare the journal entry on April 1, 2018. [6 points] b) The bonds are sold on November 1, 2019 at 104 plus accrued interest. Amortization was recorded when interest was received by the straight-line method (by months and round to the nearest dollar). Prepare all entries required to properly record the sale. [12 points) Page 7 of 17 Previous Page Next Page

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