Question: On 1 / 1 / 2 3 , Jeckle Technologies Inc. paid $ 4 , 7 9 2 , 0 8 5 to acquire $

On 1/1/23, Jeckle Technologies Inc. paid $4,792,085 to acquire $5,000,000 in bonds that mature

in 5 years. The bonds pay interest semi-annually at 6% per annum on 6/30 and 12/31. The fair

value of the bonds at 12/31/23 was $4,930,392.

Required:

• Prepare the 2023 journal entries if the investment is classified as (i) HTM or (ii) AFS.

• Assume Jeckle sold the bond investment on 7/1/24 for $4,890,000. Prepare the required

 

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