Prestige Company purchased bonds of Progressive Enterprises on July 1, 2023. The bonds pay interest semi-annually,...

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Prestige Company purchased bonds of Progressive Enterprises on July 1, 2023. The bonds pay interest semi-annually, on January 1 and July 1 of each year. Prestige has a year end of December 31. Other information pertaining to the investment follows: Coupon rate for the Progressive bonds Effective interest rate of Progressive Bonds on July 1, 2023 Face value of bonds purchased Maturity date of bonds On July 2, 2025, Prestige Company sold this investment at the following rate: 6% 7% 467,100 7/1/2028 Prestige Company follows ASPE and accounts for this investment using the amortized cost method and the effective interest method. Required: 1. Calculate the amount paid by Prestige Company to purchase the bond investment. (2 marks) 2. Prepare an amortization schedule for Prestige Company's bond invesment for the first 4 payments. (2 marks) 3. Prepare the journal entries required by Prestige to account for the bond investment on each of the following dates: (a) July 1, 2023 (0.5 marks) (b) December 31, 2023 (1.5 marks) (c) July 1, 2024 (1.5 marks) (d) July 2, 2025 (2.5 marks) 97 Prestige Company purchased bonds of Progressive Enterprises on July 1, 2023. The bonds pay interest semi-annually, on January 1 and July 1 of each year. Prestige has a year end of December 31. Other information pertaining to the investment follows: Coupon rate for the Progressive bonds Effective interest rate of Progressive Bonds on July 1, 2023 Face value of bonds purchased Maturity date of bonds On July 2, 2025, Prestige Company sold this investment at the following rate: 6% 7% 467,100 7/1/2028 Prestige Company follows ASPE and accounts for this investment using the amortized cost method and the effective interest method. Required: 1. Calculate the amount paid by Prestige Company to purchase the bond investment. (2 marks) 2. Prepare an amortization schedule for Prestige Company's bond invesment for the first 4 payments. (2 marks) 3. Prepare the journal entries required by Prestige to account for the bond investment on each of the following dates: (a) July 1, 2023 (0.5 marks) (b) December 31, 2023 (1.5 marks) (c) July 1, 2024 (1.5 marks) (d) July 2, 2025 (2.5 marks) 97