Question
EFI paid $292,189 for a $300,000, 4.0% coupon bond issued by Canaan Corp. that pays interest on June 30 and December 31 each year. The
EFI paid $292,189 for a $300,000, 4.0% coupon bond issued by Canaan Corp. that pays interest on June 30 and December 31 each year. The bond matures on December 31, 20X6. EFI classified this investment at amortized cost.
If market value is 287,600 on December 31, 20X1, what would the journal entry be on December 31, 20X1?
I'm very lost on this question. Does it even matter what the market value is as it is an Amortized cost investment?
Would we just do:
Dr. Cash 6000
Dr. investment-Canaan Corp 2599
Cr. Investment revenue 8599?
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Managerial Accounting For Dummies
Authors: Mark P Holtzman, Karen Schoenebeck
1st Edition
1118116429, 978-1118116425
