Record the transaction for the purchase of the T/I - Bond plus its accrued interest on May 2, 
 

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On May 2, 2019, BeanCountr purchased 120 PortKey Electric Corp. 10-year bonds when the market interest rate was 6 per cent. To purchase the bonds, BeanCountr paid CA$138,416.¹ The price included accrued interest and a $460 brokerage fee. The bonds were first issued on November 15, 2015, when the market interest rate was 4 per cent. The bond paid an annual coupon rate of 8 per cent on November 15 and May 15 of each year. On August 30, 2019, BeanCountr sold 100 per cent of the PortKey Electric Corp. bonds when the market interest rate was 5 per cent, incurring a brokerage commission of $270. On May 2, 2019, BeanCountr purchased 120 PortKey Electric Corp. 10-year bonds when the market interest rate was 6 per cent. To purchase the bonds, BeanCountr paid CA$138,416.¹ The price included accrued interest and a $460 brokerage fee. The bonds were first issued on November 15, 2015, when the market interest rate was 4 per cent. The bond paid an annual coupon rate of 8 per cent on November 15 and May 15 of each year. On August 30, 2019, BeanCountr sold 100 per cent of the PortKey Electric Corp. bonds when the market interest rate was 5 per cent, incurring a brokerage commission of $270.

Answer rating: 100% (QA)

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