Essay
On April 1, 2020, the DEF sold a $2,000,000 bond issue dated January 1, 2020, to yield 9% per annum to maturity.The bonds were to be outstanding for twenty years from January 1, 2020, and the stated rate of interest was 8%.Interest is paid each January 1.
(a)Give the entry to record the purchase of one-fourth of these bonds as a long-term investment by NOP.Assume effective interest amortization and contra/adjunct accounts.
(b)Give the December 31, 2020, adjusting and closing entries for NOP.
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(a) 
(b) PV @ n = 20; i = 9:
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Correct Answer:
Verified
(b) PV @ n = 20; i = 9:Principal ...
View Answer
Unlock this answer now
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