On January 1, 2018, Warden decided to invest in the 20 year bonds of Lake Stevens. The bonds pay interest on June 30 and December 31 at 6% annually. The $120,000 of bonds were purchased at 102 plus $80 broker commission. Warden intends to hold the bonds until maturity. 1. Journalize the purchase of the investment on January 1, 2018. 2. Journalize the first interest payment on the investment on June 30, 2018. 3. Journalize the maturity of the investment after the final interest payment.

On January 1, 2018, Warden decided to invest in the 20 year bonds of Lake Stevens. The bonds pay interest on June 30 and December 31 at 6% annually. The $120,000 of bonds were purchased at 102 plus $80 broker commission. Warden intends to hold the bonds until maturity. 1. Journalize the purchase of the investment on January 1, 2018. 2. Journalize the first interest payment on the investment on June 30, 2018. 3. Journalize the maturity of the investment after the final interest payment.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter6: Fixed-income Securities: Characteristics And Valuation

Section: Chapter Questions

Problem 5P

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On January 1, 2018, Warden decided to invest in the 20 year bonds of Lake Stevens. The bonds pay interest on June 30 and December 31 at 6% annually. The $120,000 of bonds were purchased at 102 plus $80 broker commission. Warden intends to hold the bonds until maturity.
1. Journalize the purchase of the investment on January 1, 2018.
2. Journalize the first interest payment on the investment on June 30, 2018.
3. Journalize the maturity of the investment after the final interest payment.