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On april 1, 2010, west co. purchased $160,000 if 6% bonds for $166,300 plus accrue interest on available for sale security. interest is paid on july 1 and january 1 and the bonds mature on july 1, 2015.
a. Prepare the journal entry on april 1, 2010.
b. The bonds are sold on november 1, 2011 at 13 plus accrued interest. amortization was recorded when interest was received by the straight-line method. prepare all entries required to properly record the sale.
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