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General Investment Co

Question 2

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General Investment Co.(GIC)purchased bonds on January 1,2012.GIC's accountant has projected the following amortization schedule from purchase until maturity:
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Recording the bond purchase would have what effect on the financial statements?
A)Increase assets.
B)Increase liabilities.
C)Increase assets and liabilities.
D)No effect on total assets and total liabilities.

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