Prepare the journal entries to record the transactions

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Question

Carla Vista Company purchased 70 Rinehart Company 5%, 10-year, $1,050 bonds on January 1, 2020, for $73,500. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Carla Vista Company sold 40 of the bonds for $40,425.

Prepare the journal entries to record the transactions described above.

Reference no: EM132365795

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