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help fill wrong entries On January 1, 2020, Concord Company purchased 4% bonds, having a maturity value of $430,000 for $366,027. The bonds provide the
help fill wrong entries On January 1, 2020, Concord Company purchased 4% bonds, having a maturity value of $430,000 for $366,027. The bonds provide the bondholders with a 6% yield. They are dated January 1,2020, and mature January 1, 2027, with interest paid on June 30 and December 31 of each year. Concord Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows. (a) Prepare the journal entry at the date of the bond purchase. (b) Prepare the joumal 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 decimol places, es. 2,525.25. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Jan. 1,2020 Debt investments 366027 Cash (b) Jun. 30,2020 v Cash 8600 Debt lavestments 2381 Interest Revenue Dec. 31.2020 Cash 12845 Debt investments Interest Revenue (To record interest received) Fair Value Adjustment 9850 Unrealized Holding Gain or Loss-Equity (To record fair value adjustment) (c) Dec 31,2021 Unrealized Holding Gain or Loss - Equity 10127
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