On January 2, 2014, Mark Company acquired, as an investment, bonds with a face value of $500,000 for $562,300 to be held-to-maturity. The bonds carry a stated interest rate of 12% and an effective yield of 10%. Interest is paid on June 30 and December 31, and the bonds mature on December 31, 2023.
Required:
Prepare the journal entries necessary to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization.

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The Answer of On January 2, 2014, Mark Company acquired, as an investment, bonds with a face value of $500,000 for $562,300 to be held-to-maturity. The bonds carry a stated interest rate of 12% and an effective yield of 10%. Interest is paid on June 30 and December 31, and the bonds mature on December 31, 2023.
Required:
Prepare the journal entries necessary to record the purchase of the bonds and the first two interest receipts using the straight-line method of amortization.

On January 2, 2014, Mark Company Acquired, as an Investment