Question
GENES Inc.: On January 1, 2023 its issue date, GENES Inc. purchased a 9%, $200,000, 10-year bond. Interest is paid annually on December 31. GENES
GENES Inc.:
On January 1, 2023 its issue date, GENES Inc. purchased a 9%, $200,000, 10-year bond. Interest is paid annually on December 31. GENES Inc. uses the amortized cost model and the effective interest method for amortizing premium or discount. The current market rate was 10% and as a result GENES Inc. paid $187,711 for the bonds. On December 31, 2023, the bonds have a market value of $185,000. GENES Inc. applies IFRS.
Required: Record the receipt of interest for 2023.
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Accounting A Smart Approach
Authors: Mary Carey, Jane Towers-Clark, Cathy Knowles
2nd Edition
0199674914, 978-0199674916
