Business, 08.03.2021 20:00 charethafoster

On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for $344,260.74. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Bonita Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. 2020 $342,000
2023 $330,700
2021 $329,700
2024 $320,000
2022 $328,700
(a) Prepare the journal entry at the date of the bond purchase.
(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.
(c) Prepare the journal entry to record the recognition of fair value for 2021.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 05:50

Emily spent her summer vacation in buenos aires, argentina, where she got plastic surgery for a fraction of what it would cost in the united states. this is an example of:

Answers: 2

Answer

Business, 22.06.2019 20:30

Contrast two economies that transitioned to capitalism and explain what factors affected the ease kf their transition as welas the “face” of capitalism that each has adopted

Answers: 2

Answer

Business, 22.06.2019 22:00

As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm.b. implicit costs.c. operating costs.d. fixed costs.

Answers: 2

Answer

Business, 23.06.2019 01:30

Why would adjusting the money supply be expected to increase economic growth during a recession? a) increasing the money supply will encourage more saving. b) increased money supply will encourage more spending and investment. co) decreased money supply will encourage more spending and investment. d) recession is caused by too much

Answers: 3

Answer

You know the right answer?

On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for $344...

Questions