Question: Answers are provided. Those three question marks are the ones I dont understand how to get them which on the question one (iii), Question 2
Answers are provided. Those three question marks are the ones I dont understand how to get them which on the question one (iii), Question 2 (ii) (iii) and Question 3 (ii) (iii) I think
INVESTMENT IN BONDS Company A invested $1,000,000 in a 10-year bond issued by Company B on January 1, 2017. The bond pays interest of 8% paid semi-annually. At the time of issuance, interest rates were 6%. Suld ^+ Premium , s. 1A > l manon 8767 REQUIRED Investment designated at Amortised Cost ii. Prepare the journal entries assuming when the bond was issued ii) If the bond was sold December 31, 2022 for $1,025,000, prepare Prepare the journal entries for 2017. 427st Purdarom/cary prevailing market interest rates were 10% 87537% the journal entries for the disposition assuming the facts in part () and part (i). Investment designated FV-NI i. Prepare the journal entries for 2017 ii. Assume at the end of 2017, the fair value of the bond is II. $1,075,000. $1,070,000. IlI. Investment designated FV-oc ii Assume at the end of 2018, the fair value of the bond is Prepare the journal entries for 2017 ii. i. Assume at the end of 2017, the fair value of the bond is $1,075,000. ii. Assume at the end of 2018, the fair value of the bond is $1,070,000. Hardart Investment n Bonds Fv.loooooo-.. Pmt te wos-t:3% r value Y9775 June 3 Cash Inet met in bond-_5536 interest incon 4464 57-3 34297 purchse prie mmorket r Proceedso2 soou 4S116 loss loss on disposa Cas nter inet Dee s Cos Cash lesson dispon( 50p 11477 6253 553 sI 662 11375 34 36cr /975000 5574 bend parchasd 148775 gooo,u Dec3 4009 Cash 57-3 nferert ncon 51-) oct 6:536 Cask Investmeti bonds Interest ncme 5 8 74 24, 26 1148 775-536-57-3:11375% 13ys 3 1 x 39.. 34126 huldig gaineVCL o 9 74 Cos h 80oo Loss on oltspusat 51612
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
