League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $900,000 of CocoCorp
Question:
League Up & Co. owns vast amounts of corporate bonds. Suppose League Up buys $900,000 of CocoCorp bonds at face value on January 2, 2024. The CocoCorp bonds pay interest at the annual rate of 8% on June 30 and December 31 and mature on December 31, 2028. League Up intends to hold the investment until maturity.
Requirements
1. How would the bond investment be classified on League Up’s December 31, 2024, balance sheet?
2. Journalize the following on League Up’s books:
a. Receipt of final interest payment on December 31, 2028.
b. Disposition of the investment at maturity on December 31, 2028.
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Step by Step Answer:
1 League Up would report the bond investment as a heldtomaturity debt investment classified ...View the full answer
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Horngrens Accounting The Financial Chapters
ISBN: 9780136162186
13th Edition
Authors: Tracie Miller Nobles, Brenda Mattison
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