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Anon25 [30]
3 years ago
7

On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale security, with interest payabl

e on July 1 and January 1. The bonds sell for $623,625, which results in a premium of $23,625 and an effective interest of 4%.
Required:
a. Prepare the journal entry on January 1, 2018.

Business
1 answer:
Andrei [34K]3 years ago
4 0

Answer:

#See attached photos of both the Jan 1,2018 journal entry and the bond ammortization schedule.

Explanation:

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