(Solved): On January 1, 2019, Kelly Corporation Acquired Bonds With A Face Value Of $500,000 For $484,163.65, ...
On January 1, 2019, Kelly Corporation acquired bonds with a face value of $500,000 for $484,163.65, a price that yields a 11% effective annual interest rate. The bonds carry a 10% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity.
|Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the:|
|1.||straight-line method of amortization|
effective interest method of amortization