Business, 21.06.2020 03:57 prasiddhipawani
atton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2021, paying $1,410,375. The bonds mature January 1, 2031; interest is payable each July 1 and January 1. The discount of $89,625 provides an effective yield of 11%. Patton Company uses the effective-interest method and plans to hold these bonds to maturity. On July 1, 2021, Patton Company should debit its Debt Investments account for the Scott Company bonds by and credit its Interest Revenue account by .
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atton Company purchased $1,500,000 of 10% bonds of Scott Company on January 1, 2021, paying $1,410,3...
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