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On July 1, 2014, Patrick Company Pays ₤12,000 to Its

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Essay

On July 1, 2014, Patrick Company pays ₤12,000 to its insurance company for a 2-year insurance policy.
Instructions
Prepare the necessary journal entries for Patrick on July 1 and December 31.


Definitions:

Investment

The action or process of investing money for profit or material result.

Coupon Rate

A bond's annual interest yield, represented as a percentage of its principal amount.

Market Rate

The market rate refers to the prevailing interest rate available in the marketplace for transactions of a similar nature.

Bonds

Fixed-income securities that represent a loan made by an investor to a borrower, typically corporate or governmental.

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