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Business, 18.02.2021 21:20 yariiixox

On January 1, 2020, Blue Company purchased 10% bonds having a maturity value of $420,000 for $453,537.42 The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Blue Company uses the effective interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, es 2,525 25. (Enter answers to 2 decimal places, es 2,525 25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.)

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On January 1, 2020, Blue Company purchased 10% bonds having a maturity value of $420,000 for $453,53...
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