The purchase of shares available for sale in the form of bonds with a face value of
Question:
The purchase of shares available for sale in the form of bonds with a face value of 400,000 and a period of 5 years at a semi-annual interest rate of 10% and the company paid 432 and 444 dinars. The issuance premium generates an effective interest rate of 8%.
Required:
1- Recording the record of the purchase of securities available for sale.
2- Preparing a schedule for calculating the effect of amortization of the issued bonus on the interest income recorded in the periods of July 1, 2020, and January 1, 2021, using the effective interest method.
3- Registering the registration of the first half of the year’s interest collection as it is on July 1, 2020.
4- Recording the adjustment entry for the interest income as of December 31, 2020.
5- Photocopying the balance sheet as it is on December 31, 2020.
6- Registration of the interest collection record as it is on January 1, 2021.
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina