On December 31, 2020, O'Hura Corporation purchased $55,000, 5 %, 11-year bonds as a long-term investment,...

  

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On December 31, 2020, O'Hura Corporation purchased $55,000, 5 %, 11-year bonds as a long-term investment, paying $52,800 cash. The bonds pay interest semi-annually each June 30 and December 31. O'Hura uses the straight-line amortization method. Part A: Identify the following information: 1. Face Value 2. Stated Rate of Interest 3. Annual Stated Interest 4. Semi-annual stated interest 5. Purchase Price of Bonds 6. Was the bond purchased at a premium or discount? (Type in Premium or Discount) 7. What was the amount of the premium or discount? In the attached workpaper # 5, complete Parts B, C, and D below. Part B: Give the general journal entry required to record the purchase of the bond investment on December 31, 2020. Part C: Give all of the general journal entries required to record the bond investment transactions for 2021. Part D: Indicate the names and balances of the accounts to be reported on O'Hura's 2021 financial statements. Part E: What would the book value of the bond investment be on December 31, 2030? Workpaper #5 in both PDF and Excel format. Be sure to save your completed file. You will uploaded your file in the next question. On December 31, 2020, O'Hura Corporation purchased $55,000, 5 %, 11-year bonds as a long-term investment, paying $52,800 cash. The bonds pay interest semi-annually each June 30 and December 31. O'Hura uses the straight-line amortization method. Part A: Identify the following information: 1. Face Value 2. Stated Rate of Interest 3. Annual Stated Interest 4. Semi-annual stated interest 5. Purchase Price of Bonds 6. Was the bond purchased at a premium or discount? (Type in Premium or Discount) 7. What was the amount of the premium or discount? In the attached workpaper # 5, complete Parts B, C, and D below. Part B: Give the general journal entry required to record the purchase of the bond investment on December 31, 2020. Part C: Give all of the general journal entries required to record the bond investment transactions for 2021. Part D: Indicate the names and balances of the accounts to be reported on O'Hura's 2021 financial statements. Part E: What would the book value of the bond investment be on December 31, 2030? Workpaper #5 in both PDF and Excel format. Be sure to save your completed file. You will uploaded your file in the next question.

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Calculations No Particulars 1 Face Value Stated Rate ... View the full answer