A 1000 bond paying interest annually on december 31 is


A $1,000 bond, paying interest annually on December 31, is purchased on January 1 at 110 as a long-term investment. The life of the bond is 5 years. Prepare entries for the first year and use the straight-line method of premium amortization. Also, calculate thenetinterest revenue for the year. The interest rate is 10%.

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Accounting Basics: A 1000 bond paying interest annually on december 31 is
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