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On 1st August, 2004, the McCellen Company acquired $100,000, 8 percent bonds of Lankford Co. for $104,000 plus accrued interest. The bonds were dated 1st August, 2004, and mature on 31st July, 2009, with interest payable each January 31 and July 31. McCellen plans on holding the bonds until their maturity.
What entry should McCellen make to record purchase of the bonds on 1st August, 2004?
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