On 10-01-16, Bandhan Company purchased 50 of Pfizer Company's $1,000, 3% bonds for $49,200. The Pfizer Company
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Question:
On 10-01-16, Bandhan Company purchased 50 of Pfizer Company's $1,000, 3% bonds for $49,200. The Pfizer Company bonds were dated 10-01-16 and will mature on 10-01-19. Bandhan will receive interest every April 1 and October 1. On 08-01-18, Bandhan sold the bonds at 103 plus interest. The Pfizer Company's bonds are Bandhan's only investment in bonds. Bandhan classified the bonds as an available-for-sale investment. Bandhan closes its books every 12-31.
The bonds were trading at the following amounts as of the following dates:
- 12-31-16 98
- 12-31-17 102
Prepare the entries B should make on:
- 10-01-16.
- 12-31-16.
- 04-01-17.
- 12-31-17.
- 08-01-18.
And make explanations if needed.
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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