Mercer Corporation acquired $400,000 of Park Companys bonds on June 30,2018, for $409,991.12. The bonds...
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Accounting
Mercer Corporation acquired $ of Park Companys bonds on June for $ The bonds carry a stated interest rate and pay interest semiannually on June and December The appropriate market interest rate is and the bonds are due June
Required:
Prepare an investment interest income and premium amortization schedule, using the:
a straightline method
b effective interest method
Prepare journal entries to record the December and December interest receipts using both methods.
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