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On January 1, 2018, Jones Jeans Co. buys a 8 year $600,000 face value bond from...

On January 1, 2018, Jones Jeans Co. buys a 8 year $600,000 face value bond from Rawlings Inc. The bonds pay semi-annual interest on January 1 and July 1. The bonds are classified as held to maturity. Stated Coupon Rate= 12% Market Yield Rate= 10%

Prepare the entry at 12/31/17 for Jones Jeans Co. under the following assumptions.

• Classified as available for sale

• Classified as trading.

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ekkarill92 answered 1 year ago
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