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Prepare all required entries for UHL

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Question - The following bond transactions occurred during 2021 for the University of Higher Learning (UHL) and Oak Ltd.:

Feb. 1 UHL issued $9.3 million five-year, 4% bonds at 96 (this means 96% of face value) at a price to yield a market interest rate of 4.9%. The bonds pay interest semi-annually on August 1 and February 1.

Feb. 1 Oak Ltd. purchased $3.0 million of UHL's bonds at 96 as a long-term investment to be held to maturity.

Aug. 1 UHL paid the semi-annual interest on the bonds.

Required - Prepare all required entries for UHL, the investee, to record the above transactions.

Reference no: EM133065146

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