Assume that on September 30, 2014, Protex, Inc , paid 98 for 5 5 bonds of Booker Corporation as a long term, held to maturity investment Te maturity value of the bonds will be $75,000 on September 30, 2019 Te bonds pay interest on March 31 and September 30 Requirements 1 What method should Protex u...

Req 1 Protex should use the amortizedcost method Req 2 Journal DA ...

Assume that on September 30, 2014, Protex, Inc., paid 98 for 5.5% bonds of Booker Corporation as

Question:

Assume that on September 30, 2014, Protex, Inc., paid 98 for 5.5% bonds of Booker as a long-term, held-to-maturity investment. Te value of the bonds will be $75,000 on September 30, 2019. Te bonds pay interest on March 31 and September 30.

Requirements
1. What method should Protex use to account for its investment in the Booker Corp. bonds?
2. Using the straight-line method of amortizing the discount on bonds, journalize all of Protex’s transactions on the bonds for 2014.
3. Show how Protex would report everything related to the bond investment on its at December 31, 2014.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...