On January 1, 2023, St Pierre Company purchased $800,000 of 10%, 10-year bonds issued by Everard...
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On January 1, 2023, St Pierre Company purchased $800,000 of 10%, 10-year bonds issued by Everard Corp at a price of $709,596. The bonds provide a 12% yield, with interest received on December 31 of each year. Effective interest method is used and the securities are classified as available-for-sale. The fair values of the securities are $710,500 on 12/31/2023, and $722,300 on 12/31/2024. On June 30, 2025, St Pierre sells the bonds at $723,000 plus accrued interest. Instructions: Prepare journal entries for the following events of St Pierre Company. (a) the purchase of the bonds on 1/1/2023. (b) the interest and fair value recognition on 12/31/2023 and 12/31/2024. (c) the sale of the bonds on 6/30/2025. On January 1, 2023, St Pierre Company purchased $800,000 of 10%, 10-year bonds issued by Everard Corp at a price of $709,596. The bonds provide a 12% yield, with interest received on December 31 of each year. Effective interest method is used and the securities are classified as available-for-sale. The fair values of the securities are $710,500 on 12/31/2023, and $722,300 on 12/31/2024. On June 30, 2025, St Pierre sells the bonds at $723,000 plus accrued interest. Instructions: Prepare journal entries for the following events of St Pierre Company. (a) the purchase of the bonds on 1/1/2023. (b) the interest and fair value recognition on 12/31/2023 and 12/31/2024. (c) the sale of the bonds on 6/30/2025.
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a Purchase of the bonds on 112023 Date Account Debit Credit 112023 Availablefor... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Posted Date:
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