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Following are the non strategic investment tractions of corona inc. 2020 Jan 1 Purchased for $78,141 an 8% $75,000 bond that matures in 10
Following are the non strategic investment tractions of corona inc. 2020 Jan 1 Purchased for $78,141 an 8% $75,000 bond that matures in 10 years from Hanna corporation when the market rate was 7.4%. Interest is paid semiannually beginning June 30, 2020 June 30 Received interest on the Hanna Bond - July 1 Paid $118,047 for a trust Inc. Bond with a par value of $120,000 and a five year term. The bond pays interest quarterly beginning September 30, 2020. at the annual rate of 7.8%; the market interest rate on the date of purchase was 8.2%. Sept 30 Received interest on the Trust Bond Dec 31 Received interest on the Hanna and trust bonds Dec 31 The fair values of the bonds on this date equaled the fair values. Required: 1. For each of the bond investments, prepare an amortization schedule showing only 2020, 2021 2. Prepare the entries to record the transactions described above.
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