Question: Unit 2 assignment 3 - journal bond purchases Prepare transactions according to the Generally Accepted Accounting Principles. Account for various transactions using industry-standard accounting software.

Unit 2 assignment 3 - journal bond purchases

Prepare transactions according to the Generally Accepted Accounting Principles.

Account for various transactions using industry-standard accounting software.

This assignment will give you experience with complex accounting transactions. In this assignment you will prepare the journal entries for the issuance and transactions related to bonds.

Unit 2 assignment 3 - journal bond purchases Prepare transactions according to

Bonds purchases Cisco Computing invested in $100,000 face amount of 10-year bonds issued by Horton Micro Chip Company on January 1, 20X1. The bonds were purchased at 103, and bear interest at a stated rate of 8% per annum, payable semiannually. The preimum will be amorized on a straight line basis. Prepare the journal entry to record the initial investment on January, 20X1. Prepare the journal entry that Devol would record on each interest date. Debit Credit Cisco Computing invested an additional $100,000 face amount of 10-year bonds issued by Waco Micro Chip Company on January 1, 20X1. The bonds were purchased at 95, and bear interest at a stated rate of 7% per annum, payable semiannually. The discount will be amorized on a straight line basis. (a) Prepare the journal entry to record the initial investment on January, 20X1. (b) Prepare the journal entry that Devol would record on each interest date. Debit Credit

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