Moonwalker Company purchased, as a held-to-maturity investment, $50,000 of the 9%, 5-year bonds of Prime Time Corporation

Question:

Moonwalker Company purchased, as a held-to-maturity investment, $50,000 of the 9%, 5-year bonds of Prime Time for $46,304, which provides an 11% return. Prepare Moonwalker’s journal entries for
(a) The purchase of the investment, and
(b) The receipt of annual interest and discount amortization. Assume effective-interest amortization is used.

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...