Prepare the entries in the books of essential

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Question - On July 1, 2021, Essential Company acquired $100,000 face value 8% bonds of BC Hydro Corporation to yield 6%. The bonds were dated July 1, 2021, and mature on June 30, 2025, with interest payable each June 30. Essential intends to hold the bonds to maturity.

Required -

1. Prepare the following entries in the books of Essential Acquisition of bonds on July 1, 2021.

2. Prepare the following entries in the books of Essential for the year-end adjusting entry at December 31, 2021.

3. Prepare the following entries in the books of Essential for the receipt of the first interest payment on June 1, 2022.

Reference no: EM132993405

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