Concord Company purchased, on January 1, 2017, as a held-to-maturity
investment, $68,000 of the 10%, 5-year bonds of Chester Corporation for $63,098, which provides an 12% return.
Prepare Concord's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization. Assume effective-interest amortization is used.
Questions & Answers
Have a Question?
Be the first to ask a question about this.