What is the compound journal entry to record the interest

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Problem - On Jan. 1, 2021, ABC paid $3,050,000 for a serial bond that has a face value of $3,000,000, term of 5 years, and nominal rate of 9%. ABC made the investment to collect the contractual cash flows which are to be received every Dec. 31, 2021. ABC additionally paid the broker a fee of $25,550. The resulting effective interest rate from the acquisition is 8%. What is the compound journal entry to record the interest collected and principal amount collected as well as the interest earned on Dec. 31, 2021? Also, provide the correct balance of the investment after collecting the cash flows on that same day.

Reference no: EM132886146

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