On January 1, 2021, you invest excess cash in $120,000, 8%, 3-year bonds that you classify...
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On January 1, 2021, you invest excess cash in $120,000, 8%, 3-year bonds that you classify as Amortized Cost investments. Interest is paid on June 30 and December 31 every year. The yield-to-maturity is 9%. The bonds trade at $116,000 on December 31, 2021 and $118,000 December 31, 2022. Required: a) Record all journal entries related to these bonds for 2021. b) How would your answer to a) change if these bonds are classified as FVTOCI. c) Record the journal entries for 2022 under FVTOCI. On January 1, 2021, you invest excess cash in $120,000, 8%, 3-year bonds that you classify as Amortized Cost investments. Interest is paid on June 30 and December 31 every year. The yield-to-maturity is 9%. The bonds trade at $116,000 on December 31, 2021 and $118,000 December 31, 2022. Required: a) Record all journal entries related to these bonds for 2021. b) How would your answer to a) change if these bonds are classified as FVTOCI. c) Record the journal entries for 2022 under FVTOCI.
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a Journal entries for 2021 Amortized Cost classification 1 January 1 2021 Purchase of the bonds at 1... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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