On January 1, 2016, Kelly Corp

Anonymous
timer Asked: Mar 25th, 2016

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On January 1, 2016, Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2019, and are being held to maturity.Required:Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the:1.straight-line method of amortization2.effective interest method of amortization

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