Holding the bonds until their maturity


On August 1, 2004, the McCellen Company acquired $100,000, 8% bonds of Lankford Co. for $104,000 plus accrued interest. The bonds were dated August 1, 2004, and mature on July 31, 2009, with interest payable each January 31 and July 31. McCellen plans on holding the bonds until their maturity.

What entry should McCellen make to record the purchase of the bonds on August 1, 2004?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Holding the bonds until their maturity
Reference No:- TGS048303

Expected delivery within 24 Hours