Consider the following facts: - Company A acquired bonds with a face value of $8

Question

Consider the following facts: - Company A acquired bonds with a face value of $800,000. - The bonds were purchased between semiannual interest payment dates. - The purchase price of the bonds was 102. - Company A also paid brokerage fees of $12,000 as part of the purchase. - Additionally, Company A paid accrued interest for three months of $20,000 when the bonds were purchased. Company A should record a cost of $ __________ for these bonds and include the amount in is Long-Term Investment in Bonds account.

Explanation / Answer

Company A should record a cost of $ ___$812000___ for these bonds and include the amount in is Long-Term Investment in Bonds account.

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