On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60. The bonds are due December 31, 2021, carry a 10% stated rate, and were purchased to yield 12%. interest is payable semiannually on June 30 and December 31. On January 1, 2021, in contemplation of a major acquisition,one-fourth of the bonds were sold for $127,000. The remainder were held until maturity. Prepare journal entries to record purchase of the bonds, each interest pay ment，the partial sale of the investment on January 1, 2021 , and the retirement of the bond issue on December 31, 2021.
On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60. The bonds are due December 31, 2021, carry a 10% stated rate, and were purchased to yield 12%. interest is payable semiannually on June 30 and December 31. On January 1, 2021, in contemplation of a major acquisition,one-fourth of the bonds were sold for $127,000. The remainder were held until maturity. Prepare journal entries to record purchase of the bonds, each interest pay ment，the partial sale of the investment on January 1, 2021 , and the retirement of the bond issue on December 31, 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2019, Mark Corporation purchased bonds with a face value of $500,000 for $475,413.60. The bonds are due December 31, 2021, carry a 10% stated rate, and were purchased to yield 12%. interest is payable semiannually on June 30 and December 31. On January 1, 2021, in contemplation of a major acquisition,one-fourth of the bonds were sold for $127,000. The remainder were held until maturity.
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