Benton Front Inc. made the following bond investment during the year for the purpose of trading. Assume
Question:
Benton Front Inc. made the following bond investment during the year for the purpose of trading. Assume Benton uses the fair value through profit or loss model and has a fiscal year end at March 31, 2022.
Feb. 1, 2022 Purchased Arnprior Bonds at par for $23,000. Interest is paid semi-annually at a rate of 4% on February 1 and August 1 each year.
Mar. 31, 2022 The Arnprior Bonds were trading at 101.
Aug. 1, 2022 Collected interest on the Arnprior Bonds.
Aug. 2, 2022 Sold the Arnprior Bonds for $23,500.
Record the above transactions and any necessary adjusting entries for Benton Front at its year end of March 31, 2022.
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine