On January 1,2014,Exclusive Company Purchases $10,000 of 6% Bonds in Smiley

question 78

Essay

On January 1,2014,Exclusive Company purchases $10,000 of 6% bonds in Smiley Company at a price of 95.Exclusive Company intends to hold the bonds until the maturity date on January 1,2024.The interest dates are January 1 and July 1.Exclusive Company amortizes any discount or premium using the straight-line method.The fiscal year end of Exclusive Company is December 31.
Required:
Prepare the journal entries on:
1.January 1,2014
2.July 1,2014
3.December 31,2014
4.January 1,2015
Explanations are not required.

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Definitions:

Desensitization

The diminished emotional responsiveness to a negative, aversive or positive stimulus after repeated exposure to it.

Cognitive Behavior Therapy

A psychotherapeutic approach that addresses dysfunctional emotions, maladaptive behaviors, and cognitive processes through a number of goal-oriented, explicit systematic procedures.

Anxiety Disorders

Class of disorders in which the primary symptom is excessive or unrealistic anxiety.

Depression

A mental health disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.