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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. Prepare the following journal entries: • Find the price of the bond • Entry at acquisition. • Entry to recognize semi-annual interest revenue at 7/1/18. • Entry necessary if market value of the bond is $628,000 at 12/31/17.

stated coupon rate-12% Market Yield Rate- 10%

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ekkarill92 answered 1 year ago
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