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Marigold Corporation purchased on January 1, 2020, as a held-to-maturity investment, $57,000 of the 8%, 6-year bonds of
Posted: Fri Jul 01, 2022 8:27 am
by answerhappygod
- Marigold Corporation Purchased On January 1 2020 As A Held To Maturity Investment 57 000 Of The 8 6 Year Bonds Of 1 (39.15 KiB) Viewed 47 times
Marigold Corporation purchased on January 1, 2020, as a held-to-maturity investment, $57,000 of the 8%, 6-year bonds of Harrison, Inc. for $62,674, which provides a 6% return. The bonds pay interest semiannually. Prepare Marigold's journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) No. Account Titles and Explanation (a) (b) Debt Investments Cash O Cash Debt Investments Interest Revenue Debit 62674 2280 Credit 62674