None Use the following data for problems 4 - 6:Purchase of Bonds as Investment: Beta Company purchased $400,000 of 8 percent bonds of Star Corporation on January 1,2011, at a discount, paying $359,118. The bonds mature January 1, 2016 and yield 10% interest payable each July 1 and January1.4) Record the Journal entry on Beta's books for purchase of the bonds:5) Record the receipt by Beta of the first semi-annual interest payment (note: you must calculate the amount of the bonddiscount amortization pertaining to the first semi-annual payment)6. Assume that Beta Company sells its investment in Star bonds on November 1, 2015, at 99% plus accrued interest. Record thejournal entry to accrue the interest revenue and discount amortization (4 months). Assume that the bond discount amortizationat December 31 would have been $3,035. (Also, refer to the table attached)

**4) Purchase of Bonds by Beta Company:** When Beta Company purchases bonds as an investment, it…

Answered: Use the following data for problems 4 -…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 4E

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