How does the difference compare to total interest income

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Question :

Petersen Stores invested in $100,000 face amount of 4-year bonds issued by Erilt Food Supply Company on jahuary 1, 20X1. The bonds were purchased at 98, and hear interest at a stated rate of 8% per annum, payable semiannually.

a Prepare the journal entry to record the initial investment onjanuary. 20X1.

b Prepare the journal entry that Petersen would record on each interest date.

c Prepare the journal entry that Petersen would record at maturity of the ponds.

d How much cash flowed "in" and "out" on this ihyestmeht. and how does the difference compare to total Interest income that was recognized?

Reference no: EM132380186

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