Prepare any adjusting entries required at December

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Question - On January 1, 2021, Sheridan Ltd., a public company, purchased $558,000 of 5-year, 8% bonds at par from Grouper Corporation. Interest is received semi-annually on July 1 and January 1. Sheridan purchased the bonds to earn interest. At December 31, 2021, the bonds were trading at 103.

Required -

a. Prepare the journal entry to record the purchase of the bonds on January 1.

b. Prepare the journal entry to record the receipt of interest on July 1.

c. Prepare any adjusting entries required at December 31.

Reference no: EM133061433

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