Kimpler Company purchased $200,000 of the 6%, 10-year bonds of Banks Corporation for $185,788 on 5/2/23,...
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Kimpler Company purchased $200,000 of the 6%, 10-year bonds of Banks Corporation for $185,788 on 5/2/23, which provides a 7% return on semi-annual interest payments made every 5/1 and 11/1. Kimpler does not intend to hold the bonds until maturity, but will hold them for longer than a year. The market value of the bonds at 12/31/23 is $185,400. On 7/1/24, Kimpler sells the bonds (including accrued interest) for $189,750. What journal entries will Kimpler make in 2023 and 2024 to appropriately record these transactions and to report this investment on the year-end financial statements? Besides the purchase on 5/2/23, include the interest payment in 2023, all year-end accruals for 2023, the interest payment for 5/1/24 and the sale on 7/1/24. Kimpler Company purchased $200,000 of the 6%, 10-year bonds of Banks Corporation for $185,788 on 5/2/23, which provides a 7% return on semi-annual interest payments made every 5/1 and 11/1. Kimpler does not intend to hold the bonds until maturity, but will hold them for longer than a year. The market value of the bonds at 12/31/23 is $185,400. On 7/1/24, Kimpler sells the bonds (including accrued interest) for $189,750. What journal entries will Kimpler make in 2023 and 2024 to appropriately record these transactions and to report this investment on the year-end financial statements? Besides the purchase on 5/2/23, include the interest payment in 2023, all year-end accruals for 2023, the interest payment for 5/1/24 and the sale on 7/1/24.
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Answer rating: 100% (QA)
Kimpler Company Bond Investment Journal Entries 2023 May 2nd Debit Investment in Bonds Banks Corporation 185788 Credit Cash 185788 To record the purch... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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