On January 1,2018 , the Lexter Corporation purchased $490,000 par value 6% bonds that mature...
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On January 1,2018 , the Lexter Corporation purchased $490,000 par value 6% bonds that mature on December 31,2021 . The company has the positive intent and ability to hold the bonds until they mature. The market rate of interest was 8% when Lexter purchased the bonds. Lexter receives interest on the bonds semiannually each June 30 and December 31 . What future cash inflows will Lexter receive on this investment? What is the purchase price of the bonds? Did Lexter purchase the bonds at a discount or premium? Prepare the journal entry to record the acquisition of the bonds
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