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Problem #2 Investment in Bonds (HTM Securities) HW On Jan. 1,2023...

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Accounting

Problem #2
Investment in Bonds (HTM Securities) HW
On Jan. 1,2023 Philo Kvetch purchased 750 bonds @ $979.61 per bond.
The new bond issue was priced such that the bonds have an yield (annual) of 5.2%
The bond (annual coupon) rate is 4.8% over the 6-year term of the bonds.
The bonds pay interest semi-annually.
1-Jan-23
Prepare the entry for the purchase of the bonds
Dr
30-Jun-23
Prepare the entry for the first semi-annual receipt
of interest and amortization using the effective
interest method.
Dr
Cr
31-Dec-23
Prepare the entry for the second semi-annual receipt
of interest and amortization using the effective interest method.
Dr
Cr
30-Jun-23
Prepare the entry for the first semi-annual receipt
of interest and amortization using the straight line method.
Dr
Cr
31-Dec-23
Prepare the entry for the second semi-annual receipt of interest and amortization using the straight line
method.
Dr
Cr

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