Remote Down & Co. owns vast amounts of corporate bonds. Suppose Remote Down buys $1,100,000...
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Remote Down & Co. owns vast amounts of corporate bonds. Suppose Remote Down buys $1,100,000 of BitterCo bonds at face value on January 2, 2016. The BitterCo bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 31, 2030. Remote Down intends to hold the investment until maturity.
1. Journalize any required 2016 entries for the bond investment.
2. How much cash interest will Remote Down receive each year from BitterCo?
3. How much interest revenue will RemoteDown report during 2016 on this bond investment?
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