On July 1, 2021, Juan Inversionista purchased as an investment with the intention of holding them until
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Question:
On July 1, 2021, Juan Inversionista purchased as an investment with the intention of holding them until maturity (held-to-maturity) bonds issued by Amazon at a cost equivalent to their maturity value of $50,000. The bonds pay interest at 6% per year to the semi-annual payable every December 31 and June 30. As of December 31, 2021, Amazon bonds have a fair value of $46,000.
- Make the July 1, 2021 journal entry to record the purchase of the debt investment.
- Make the journal entry to record the interest payment on December 31, 2021.
- Make the journal entry to record the change in the value of debt investments as of December 31, 2021.
- Make the daily payment for the collection of the investment in debt at maturity.
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
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