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Question 1 Culver Corporation purchased $68,900 of 5-year, 8% bonds of Hu Inc. for $66,174...

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Question 1 Culver Corporation purchased $68,900 of 5-year, 8% bonds of Hu Inc. for $66,174 to yield an 996 return, and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually. Your answer is partially correct. Try again. Assuming Culver Corporation applies IFRS, prepare its journal entries for the purchase of the investment and the receipt of semi-annual interest and discount amortization for the first two interest payments that will be received. (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. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit Bond Investment at Amortized Cost 68900 Cash 68900 (To record the purchase of the investment) Cash 5294 Bond Investment at Amortized Cost 662 Interest Income 5956 (To record the receipt of the semi-annual interest payment)

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