Current Attempt in Progress

Marigold Corp. purchased a $$100,000$ face value bond of Myers Corp. on August $31,2022,$ for $$108,320$ plus accrued interest. The yield on the bond is $7\mathrm{.}24\%.$ The bond pays interest annually each November $1$ at a rate of $9\%.$ On November $1,2022,$ Marigold received the annual interest. On December $31,2022,$ Marigold's year end, the fair value for these bonds was $107\mathrm{.}4.$ Marigold sold the bond on January $15,2023,$ for $$107,100$ plus accrued interest. Assume Marigold follows IFRS.

Your answer is partially correct.

Prepare the journal entries to record the purchase of the bond, the receipt of interest, any adjustments required at year end, and the subsequent sale of the bond. $($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 $0$ for the amounts. Record entries in the order displayed in the problem statement. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credil

Interest Receivable

Aug. $31,2022$ :

Interest Receivable

acc

cash

$($To accrue interest$)$

$($To record fair value adjustment$)$

$($To record fair value adjustment$)$

eTextbook and Media

Solution

Assistance Used

Aug. $31$ Interest Receivable $($$$100,0009\%\frac{10}{12})=$$$7,500$

Nov. $1$ Cash $($$$100,0009\%)$

Dec. $31$ Interest Receivable $($$$100,0009\%\frac{2}{12})=$$$1,500$

solution

Assistance Us

Aug. $31$ Interest Receivable $($$$100,0009\%\frac{10}{12})=$$$7,500$

Nov. $1,($$$100,0009\%),=$$$9,000$

Dec. $31$ Interest Receivable $($$$100,0009\%\frac{2}{12})=$$$1,500$

FV$-$NI Investments $($$$108,320-$$$107,400)=$$$920$

Selling Price of bonds

$$107,100$

$\backslash$table$[[$Interest since last interest payment $($$$100,0009\%\frac{2\mathrm{.}5}{12}),1,875],[$Cash received from purchaser,$$108,{975}_{?}$