GBC Corp. Bought A $10,000 8% Bond From Humber Inc. On January 1, 2019. It Matures On December 31, 2021,  Interest Rates In The Market Are Currently 10% And It Is Management's Intent To Hold This Long Term Investment To Maturity

Required

A Calculate The Present Value Of This Bond Investment

B Prepare An Amortization Table For The Life Of This Bond

C Prepare The Journal Entries Required To Record:

I) The Bond Purchase 

Ii) The Annual Interest Payments 

Iii) The Repayment At The End

D Now Assume That The Bond Was Acquired As A FV-NI Investment

The Fair Market Value(FMV) At The End Of Each Year Was:

2019 $9,900 2020 $9,600

I) Prepare The Journal Entries Required At The End Of Each Year To Reflect The Gain Or Loss Due To The FMV Process Using A Tee (Ledger) Account To Organize Your Answer.

Answer rating: 100% (QA)

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