Bridgeport Corp.purchased $270,000 of five-year, 7% Hydrocor bonds at 99 on June 30, 2021. Bridgeport Corp....

 

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Bridgeport Corp.purchased $270,000 of five-year, 7% Hydrocor bonds at 99 on June 30, 2021. Bridgeport Corp. purchased the bonds to earn interest. Interest is paid semi-annually each June 30 and December 31. The semi-annual amortization amount for the first interest period is $229 determined using the effective-interest method. At December 31, 2021, the bonds were trading at 98. Prepare the required journal entries on June 30 and December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date June 30 (To record purchase of bond investment.) Dec. 31 (To record collection of interest on bonds.) Dec. 31 (Torecord fair value adjustment.) eTextbook and Media Prepare the required journal entries on June 30 and December 31, 2021. amount is entered. Do not indent manually. If no entry is required, select "No En Date Account Titles and Explanation Debit June 30 v Investments at FVTPL Interest Expense Investments at Amortized Cost Interest Payable hent.) Dec. 31 Interest Revenue Investment in Associate Interest Receivable Cash No Entry (To record collection of interest on bonds.) Dec. 31 (To record fair value adjustment.) Bridgeport Corp.purchased $270,000 of five-year, 7% Hydrocor bonds at 99 on June 30, 2021. Bridgeport Corp. purchased the bonds to earn interest. Interest is paid semi-annually each June 30 and December 31. The semi-annual amortization amount for the first interest period is $229 determined using the effective-interest method. At December 31, 2021, the bonds were trading at 98. Prepare the required journal entries on June 30 and December 31, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Date June 30 (To record purchase of bond investment.) Dec. 31 (To record collection of interest on bonds.) Dec. 31 (Torecord fair value adjustment.) eTextbook and Media Prepare the required journal entries on June 30 and December 31, 2021. amount is entered. Do not indent manually. If no entry is required, select "No En Date Account Titles and Explanation Debit June 30 v Investments at FVTPL Interest Expense Investments at Amortized Cost Interest Payable hent.) Dec. 31 Interest Revenue Investment in Associate Interest Receivable Cash No Entry (To record collection of interest on bonds.) Dec. 31 (To record fair value adjustment.)

Answer rating: 100% (QA)

Date Accounts titles and explanations Debit Credit 30Jun21 Investment at amortized cost 267300 C... View the full answer