Sweetwater Ltd. purchased $0.903 million of 10 year. 4% bonds on July 1,2021 , at...
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Sweetwater Ltd. purchased $0.903 million of 10 year. 4% bonds on July 1,2021 , at 108.0 (this means 108.0% of face value). Interest is received semi-annually on January 1 and July 1. The bonds were trading at 106.5 at December 31,2021 . Sweetwater intends to trade the bonds in the near future and is using the fair value through profit or loss model. (a) Your answer is partially correct. Record the purchase of the bonds. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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