Prepare journal entry at the date of the bond purchased

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Question - On January 1, 2019, Hero Corporation purchased 10% bonds having a maturity value of $500,000. The bonds provide yield for 8%. The bonds are dated on January 1, 2019 and mature on January 1, 2024 with interest received December 31 each year. Hero Corporation holds these bonds to collect contractual cash flow.

Instructions -

a. Prepare journal entry at the date of the bond purchased.

b. Prepare bond amortization schedule.

c. Prepare the journal entry to record the interest received and the amortization for 2019.

d. Prepare the journal entry to record the interest received and the amortization for 2019.

Reference no: EM132523298

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