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Exercise 17-04 On January 1, 2020. Sweet Company purchased 11% bonds, having a maturity value of $274,000 for $295,314.87. The bonds provide the bondholdes they
Exercise 17-04 On January 1, 2020. Sweet Company purchased 11% bonds, having a maturity value of $274,000 for $295,314.87. The bonds provide the bondholdes they are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year, Sweet Company uses the effective interest method to allocate amortid discount or premium. The bonds are dassified as available for sale category. The fair value of the bonds at December 31 of each year-end is as follows 2020 $293,000 2023 $284,700 2021 $283,700 2024 $274,000 2022 $282,800 (0) Prepare the journal entry at the date of the bond purchase. (1) Prepare the journal entries to record the Interest revenue and recognition of fair value for 2020. (c) Prepare the journal entry to record the recognition of fair value for 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent may entry is required, select "No Entry for the account titles and enter for the amounts) lanation Debit Credit MOSCE NOVredents and enter for the amounts No. Date Account Tities and Explanation Debit Credit (a) (b) (To record interest received) (To record fair value adjustment) (0) Click if you would like to Show Work for this questionton Show Wors
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