On January 1, 2021, Rupar Retailers purchased $130,000 of Anand Company bonds at a discount of $4,000. The Anand bonds p

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answerhappygod
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On January 1, 2021, Rupar Retailers purchased $130,000 of Anand Company bonds at a discount of $4,000. The Anand bonds p

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On January 1, 2021, Rupar Retailers purchased $130,000 of Anand
Company bonds at a discount of $4,000. The Anand bonds pay 7%
interest but were purchased when the market interest rate was 9%
for bonds of similar risk and maturity. The bonds pay interest
semiannually on June 30 and December 31 of each year. Rupar
accounts for the bonds as a held-to-maturity investment, and uses
the effective interest method. In Rupar's December 31, 2021,
journal entry to record the second period of interest, Rupar would
record a credit to interest revenue of:
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