Kevin Company issues bonds on 1/1/20. Suppose, for Kevin Company(fiscal year end of 12/31), the carrying value of Kevin Company bonds at 12/31/20 and 12/31/21 are $106,461 and $105,073 respectively.

Please give the journal entries to mark to market at 12/31/20and 12/31/21 and supporting calculations in each year for the following scenarios:

1: FMV at 12/31/20 = $107,500; FMV at 12/31/21 = $106,500

2: FMV at 12/31/20 = $107,500; FMV at 12/31/21 = $106,000

3: FMV at 12/31/20 = $107,500; FMV at 12/31/21 = $104,500

4: FMV at 12/31/20 = $105,500; FMV at 12/31/21 = $103,500

5: FMV at 12/31/20 = $105,500; FMV at 12/31/21 = $104,500

6: FMV at 12/31/20 = $105,500; FMV at 12/31/21 = $106,000

Answer rating: 100% (QA)

Journal Entries Scenarios 1 31Dec20 Unrealized loss on bonds 1039 31Dec21 Bonds payable 1000 To Bond... View the full answer