Bridgeport Corporation purchased $63,900 of 4-year, 7% bonds of Hu Inc. for $59,689 to yield an...

  

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Bridgeport Corporation purchased $63,900 of 4-year, 7% bonds of Hu Inc. for $59,689 to yield an 9% return. It classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually. Assuming Bridgeport applies IFRS, prepare its journal entries for the purchase of the investment and the receipt of semi-annual interest and discount amortization for the first two interest payments that will be received. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.) Bridgeport Corporation purchased $63,900 of 4-year, 7% bonds of Hu Inc. for $59,689 to yield an 9% return. It classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually. Assuming Bridgeport applies IFRS, prepare its journal entries for the purchase of the investment and the receipt of semi-annual interest and discount amortization for the first two interest payments that will be received. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, e.g. 5,275.)

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Calculate the semiannual interest and discount amortization for the investment in the bonds of Hu In... View the full answer