The Dorchester Company invested $100,000 of face amount of 4-year bonds. The bonds were purchased at 98 and bear interest at a stated rate of 8% per annum, payable semiannually.
| The Dorchester Company invested $100,000 of face amount of 4-year bonds. The bonds were purchased at 98 and bear interest at a stated rate of 8% per annum, payable semiannually. | |||||||||||
| (a) | Prepare the journal entry to record the initial investment. | ||||||||||
| (b) | Prepare the journal entry that Dorchester would record on each interest date. | ||||||||||
| (c) | Prepare the journal entry that Dorchester would record at maturity of the bonds. | ||||||||||
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