The Bradford Company sold the entire bond issue described in the previous exercises to Saxton-Base…

The Bradford Company sold the entire bond issue describe

Effective Interest

The Bradford Company sold the entire bond issue described in the previous exercises to Saxton-Base Corporation.

Required:

1. Prepare the journal entry to record the purchase of the bonds by Saxton-Base on January 1, 2009.

2. Prepare the journal entry to record interest revenue on June 30, 2009 (at the effective rate).

3. Prepare the journal entry to record interest revenue on December 31, 2009 (at the effective rate).

 

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