Prepare the journal entry to record the purchase of the bond

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Reference no: EM13129734

The Bradford Company sold 12% bonds, dated January 1, with a face amount of $85 million on January 1, 2011 to Saxton-Bose Corporation. The bonds mature in 2020 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31.

Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2011. (Enter your answers in dollars not in millions. Round "PV Factor" to 5 decimal places andfinal answers to the nearest whole dollar amount. Omit the "$" sign in your response.)

Reference no: EM13129734

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