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On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value...

Question

On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value...

On April 30, 2019, Aggie Corporation purchased Smith Corporation 10%, 5-year bonds with a face value of $12,000 at par plus four months of accrued interest. Assume that on June 30, Aggie received interest on the Smith Corporation bonds.

Required:

Prepare the June 30 journal entries to record the receipt of the interest. (2)

Answers

Par Value of Bonds = $12,000 Coupon Rate = 10% General Journal Debit Credit Date April 30 Held-to-Maturity Investment 12,000


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