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Purchase of Bond Investment at Discount

Recording the purchase of a government or corporate bond for less than its face value.

Account NameTypeDebit ($)Credit ($)
Investment in BondsAsset (+)9,500.00-
CashAsset (-)-9,500.00

💡 Accountant's Note

The bond is recorded at its cost. Over time, the $500 discount will be 'amortized' into interest income until the bond reaches its full face value at maturity.

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