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E17-2B (Entries for Held-to-Maturity Securities) On July 1, 2014, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2014, and mature July 1, 2019, with interest payable on July 1 of each year.

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E17-2B (Entries for Held-to-Maturity Securities) On July 1, 2014, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated July 1, 2014, and mature July 1, 2019, with interest payable on July 1 of each year. The bonds are classified in the held-to-maturity category, and the company does not use reversing entries.;Instructions;(a) Prepare the journal entry at the date of the bond purchase.;(b) Prepare the journal entry to record the interest earned and interest received for 2014.;(c) Prepare the journal entries to record the interest earned and interest received for 2015.

 

Paper#78465 | Written in 18-Jul-2015

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