Question: League Up Co owns vast amounts of corporate bonds

League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $800,000 of CocoCorp bonds at face value on January 2, 2016. The CocoCorp bonds pay interest at the annual rate of 4% on June 30 and December 31 and mature on December 31, 2033. League Up intends to hold the investment until maturity.
1. Journalize any required 2016 entries for the bond investment.
2. How much cash interest will League Up receive each year from CocoCorp?
3. How much interest revenue will League Up report during 2016 on this bond investment?

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  • CreatedJune 15, 2015
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