Refer to the information in E17.3 and assume that Roosevelt elected the fair value option for this
Question:
On January 1, 2019, Roosevelt Company purchased 12% bonds having a maturity value of $500,000 for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2019, and mature January 1, 2024, with interest received December 31 of each year. Roosevelt's business model is to hold these bonds to collect contractual cash flows.
Instructions
a. Prepare any entries necessary at December 31, 2019, assuming the fair value of the bonds is $540,000.
b. Prepare any entries necessary at December 31, 2020, assuming the fair value of the bonds is $525,000.
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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a December 31 2019 Debt Investments 830186 Unrealized Holding Gain or Loss x I...View the full answer
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Related Book For 
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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