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Question 4 of 6 View Policies Show Attempt History Current Attempt in Progress Your...

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Accounting

Question 4 of 6
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On January 1,2025, Flounder Company purchased 12% bonds having a maturity value of $276,000 for $296,924.88. The bonds
provide the bondholders with a 10% yield. They are dated January 1,2025, and mature January 1,2030, with interest received on
January 1 of each year. Floungerer Company uses the effective-interest method to allocate unamortized discount or premium. The
bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2025.
(c) Prepare the journal entry to record the recognition of fair value for 2026.
(List all debit entries before credit entries. Credit account titles are automatically indented when 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
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