Assume that on September 30, 2016, Baytex, Inc , purchased 5 bonds of Hartley Corporation at 97 as a long term, held to maturity investment The maturity value of the bonds will be $46,000 on September 30, 2021 The bonds pay interest on March 31 and September 30 Requirements 1 What method should Bay...

Req 1 Baytexshould use the amortized cost method to account fo ...

Assume that on September 30, 2016, Baytex, Inc., purchased 5% bonds of Hartley Corporation at 97 as

Question:

Assume that on September 30, 2016, Baytex, Inc., purchased 5% bonds of Hartley at 97 as a long-term, held-to-maturity investment. The value of the bonds will be $46,000 on September 30, 2021. The bonds pay interest on March 31 and September 30?
Requirements
1. What method should Baytex use to account for its investment in the Hartley Corp. bonds?
2. Using the straight-line method of amortizing the discount on bonds, journalize all of Baytex's transactions on the bonds for 2016?
3. Show how Baytex would report everything related to the bond investment on its at its year-end, December 31, 2016?
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...