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Question - Chopin Corporation had these transactions pertaining to debt investments:
Jan.1 Purchased 90 10%, $1,000 Martine Co. bonds for $90,000 cash. Interest is payable semiannually on July 1 and January 1. July1 Received semiannual interest on Martine Co. bonds.July1Sold 30 Martine Co. bonds for $32,000.
Instructions
(a) Journalize the transactions.
(b) Prepare the adjusting entry for the accrual of interest at December 31.
PPP and Changes in the Real Interest Rate Assume that you believe exchange rate movements are mostly driven by purchasing power parity.
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