Assume that on September 30,

2020,

Quarterly

Financial paid

96.14

for

9

percent bonds of

Whitmore

as a long-term bond investment. The effective interest rate was

10 percent.

The maturity value of the bonds will be

$50,000

on September 30,

2025.

The bonds pay interest on March 31 and September 30.

Requirements

1. What method should

Quarterly

use to account for its investment in the

Whitmore

bonds?2. Using the effective interest method of amortizing the bonds, journalize all of

Quarterly's

transactions on the bonds for

2020.

3. Show how

Quarterly

would report everything related to the bond investment on its balance sheet at December 31,

2020.

Requirement 1. What method should

Quarterly

use to account for its investment in the

Whitmore

bonds?

Quarterly

should use the

amortized cost

method to account for its investment in the

Whitmore

bonds.Requirement 2. Using the effective interest method of amortizing the bonds, journalize all of

Quarterly's

transactions on the bonds for

2020.

(Record debits first, then credits. Explanations are not required. Round amounts to the nearest whole dollar.)Begin with the purchase of the bonds of

Whitmore.

Part 2 of 5 Points: 0.24 of 4 Assume that on September 30, 2020, Quarterly Financial paid 96.14 for 9 percent bonds of Whitmore as a long-term bond investment. The effective interest rate was 10 percent. The maturity value of the bonds will be $50,000 on September 30, 2025. The bonds pay interest on March 31 and September 30. Requirements 1. What method should Quarterly use to account for its investment in the Whitmore bonds? 2. Using the effective interest method of amortizing the bonds, journalize all of Quarterly's transactions on the bonds for 2020. 3. Show how Quarterly would report everything related to the bond investment on its balance sheet at December 31, 2020. Requirement 1. What method should Quarterly use to account for its investment in the Whitmore bonds? Quarterly should use the amortized cost method to account for its investment in the Whitmore bonds. Requirement 2. Using the effective interest method of amortizing the bonds, journalize all of Quarterly's transactions on the bonds for 2020. (Record debits first, then credits. Explanations are not required. Round amounts to the nearest whole dollar.) Begin with the purchase of the bonds of Whitmore. Journal Entry Date Accounts Debit Credit Sep. 30