Question
Can Someone please Help me with a analysis of the work below. I already did all the calculations, I just need help describing what the
Can Someone please Help me with a analysis of the work below. I already did all the calculations, I just need help describing what the numbers mean, and how they relate to business. Please describe in detail so I may understand, Many thanks! Company name is AJ Corporation.
Journal Entries to Record Purchased of Bonds
DateAccountDebitCredit
1-Jan-17 Investment in Bonds$300,000
Premium on Bonds$8,373.53
Cash$308,373.53
Interest Amortization Table
InterestInterestPremiumCarrying Amount
DateReceivedRevenueAmortizedof Bonds
1-Jan-17 $308,373.53
30-Jun-17 $19,500.00 $18,502.41 $997.59 $307,375.94
31-Dec-17 $19,500.00 $18,442.56 $1,057.44 $306,318.50
31-Mar-18 $9,750.00 $9,189.55 $560.45 $305,758.05
Entry to Record the Interest Revenue as on June 30, 2017
DateAccountDebitCredit
30-Jun-17 Cash$19,500.00
Interest Revenue $18,502.41
Premium on Bonds$997.59
Entry to Record Interest Revenue as on December 31, 2017
DateAccountDebitCredit
31-Dec-17 Cash$19,500.00
Interest Revenue$18,442.56
Premium on Bonds $1,057.44
Entry to Record Interest Receivable on March 31, 2018
DateAccountDebitCredit
31-Mar-18 Interest Receivable$9,750.00
Interest Revenue $9,189.55
Premium on Bonds$560.45
Entry for Sale of Bonds on March 31, 2018
DateAccountDebitCredit
31-Mar-18 Cash$159,500.00
Investment in Bonds$150,000.00
($300,000/2)
Premium on Bonds$2,879.03
($8,373.53-$997.59-$1,057.44-$560.45)/2
Interest Receivable$4,875.00
($150,000x13%x6/12)
Gain on Sale of Bonds$1,745.97
(To Record the sale of 50% ofthe value of bonds)
Entry for Retirement of Bonds on June 30, 2020
DateAccountDebitCredit
30-Jun-20 Cash$150,000.00
Investment in Bonds$150,000.00
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