Reference no: EM131202260
Jones Co. purchased $400,000 of 6-year, 10% bonds issued by Delk Corp. on 4/1/x1 for $437,541. The bonds were purchased to yield a return of 8%, and Jones will receive interest payments on 4/1 and 10/1. Jones classified this investment as Available-for-Sale. Make all entries needed to account for investment for x1 and x2 assuming the fair value of the bonds is $430,000 on 12/31/x1 and $422,000 on 12/31/x2. Jones is a calendar year company.
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: Jones Co. purchased $400,000 of 6-year, 10% bonds issued by Delk Corp. on 4/1/x1 for $437,541. The bonds were purchased to yield a return of 8%, and Jones will receive interest payments on 4/1 and 10/1. Jones classified this investment as Available-f..
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