On April 1, 2020, the DEF sold a $2,000,000 bond issue dated January 1, 2020, to yield 9% per annum to maturity.The bonds were to be outstanding for twenty years from January 1, 2020, and the stated rate of interest was 8%.Interest is paid each January 1.
(a)Give the entry to record the purchase of one-fourth of these bonds as a long-term investment by NOP.Assume effective interest amortization and contra/adjunct accounts.
(b)Give the December 31, 2020, adjusting and closing entries for NOP.

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The Answer of On April 1, 2020, the DEF sold a $2,000,000 bond issue dated January 1, 2020, to yield 9% per annum to maturity.The bonds were to be outstanding for twenty years from January 1, 2020, and the stated rate of interest was 8%.Interest is paid each January 1.
(a)Give the entry to record the purchase of one-fourth of these bonds as a long-term investment by NOP.Assume effective interest amortization and contra/adjunct accounts.
(b)Give the December 31, 2020, adjusting and closing entries for NOP.

On April 1, 2020, the DEF Sold a $2,000,000 Bond