Question: Problems 1. On May 1, 2019, Binus Co purchase $120,000, 5 years bond of Hippo Co with interest 7% and yield 5% for 130,502. The

Problems 1. On May 1, 2019, Binus Co purchase $120,000, 5 years bond of Hippo Co with interest 7% and yield 5% for 130,502. The interest will be paid semi-annually on November 1 and May 1. Following schedule present fair value of bond every end of the year: Year Fair Value December 31, 2019 $128,650 December 31, 2020 $129,458 December 31, 2021 $127,450 December 31, 2022 $124,120 December 31, 2023 $120,000 May 1, 2024 $120,000 Instruction: a. Prepare the schedule of amortisation of the bonds b. Prepare journal entry to record the purchase of bonds on May 1, 2019, assuming the bonds are classified as Held-for-collection investment c. Prepare journal entry(ies) related to held-for- collection bonds for 2020 d. Prepare journal entry(ies) related to held-for- collection bonds for 2022 e. Prepare journal entry to record the purchase of bonds on May 1, 2019, assuming the bonds are classified as trading investment f. Prepare journal entry(ies) related to trading bonds for 2021 g. Prepare journal entry(ies) related to trading bonds for 2023

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