Holden Corp 9% bonds, maturity date Dec 31, 2020, price 104, purchased 330,000
Start inc. 7% bonds, mature date December 31, 2022, price 91, purchased 400,000
Both bonds pay interest annually on December 31. Premium and discount will be amortized on a straight-line basis. Assume Dylex Corporation follows ASPE. Please make sure your final answer(s) are accurate to 2 decimal places.
1) Prepare the following journal entries to be made on their correct dates in 2015:
The acquisition of the investments. Accrued interest was paid on the acquisition dates, as appropriate