Following are the non-strategic investment transactions of Corona Inc.: Required 1. For each of the bond investments,
Question:
Required
1. For each of the bond investments, prepare an amortization schedule showing only 2014 and 2015.
2. Prepare the entries to record the transactions described above.
3. Show how the investments would be reported on Coronas December 31, 2014, balancesheet.
Transcribed Image Text:
2014 Purchased for $78,141 an 8%, $75,000 bond that matures in 10 years from Hanna Corporation when the market interest rate was 7.4%. Interest is paid semi-annually beginning June 30, 2014 Received interest on the Hanna bond Jan 30 June July 1 Paid $118,047 for a Tillemanns Inc. bond with a par value of $120,000 and a five-year term. The bond pays interest quarterly beginning September 30, 2014, at the annual rate of 7.8%, the market interest rate on the date of purchase was 8.2% Received interest on the Tillemanns bond Received interest on the Hanna and Tillemanns bonds Sept. Dec. 30 31 31 The fair values of the bonds on this date equalled the fair values
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Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
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