The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50...
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The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.
1. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2021.
2. Prepare the journal entry to record interest for Saxton-Bose on June 30, 2021.
3. Prepare the journal entry to record interest for Saxton-Bose on December 31, 2021.
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