On January 1, 2023, Bramble Limited paid $396,676.70...
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On January 1, 2023, Bramble Limited paid $396,676.70 for 14% bonds with a maturity value of $370,000. The bonds provide the bondholders with a 12% yield. They are dated January 1,2023, and mature on January 1,2028, with interest receivable on December31 of each year. Bramble accounts for the bonds using the amortized cost approach, applies ASPE using the effective interest method, and has a December 31 year end. (a) Prepare the iournal entry to record the bond purchase. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the occount titles and enter O for the amounts. List debit entry before credit entry. Round answers to 2 decimal places, es. 52.75. Prepare the journal entry to record the bond purchase. (Credit occount titles are outomatically indented when the omount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts, List debit entry before credit entry. Round answers to 2 decimal places, eg. 52.75.)
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