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how do I do the ones I missed? On January 1, 2020. Sarasota Company purchased $370,000,8% bonds of Aguirre Co. for $341,429. The bonds were
how do I do the ones I missed?
On January 1, 2020. Sarasota Company purchased $370,000,8% bonds of Aguirre Co. for $341,429. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Sarasota Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Sarasota Company sold the bonds for $343,034 after receiving interest to meet its liquidity needs. Your answer is correct. Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for- sale. (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.) Debit Account Titles and Explanation Date Credit Jan. 1. 2020 Debt Investments 841429 941429 Cash Schedule of Interest Revenue and Bond Discount Amortization-Effective-Interest Method Bonds Purchased to Yield Interest Receivable Or Cash Received Interest Revenue Bond Discount Amortization Date 1/1/20 $ $ $ 7/1/20 14800 17071 2271 1/1/21 14800 17185 2385 7/1/21 14800 17304 2504 1/1/22 14800 17429 2629 LL LLL LLL LLL 7/1/22 14800 17564 2761 14800 1/1/23 17699 [ 2899 14800 7/1/23 8044 17844 14800 3198 179106 1 1.24 [ 18156 0356 14800 7 1.24 18025 0525 [ 1.1 25 5 28572 1176371 s Total 148000 Date Account Titles and Explanation Debit Cred July 1, 2020 Cash Debt Investments Interest Revenue Dec 31 2020 Interest Receivable Debt Investments Interest Revenue . Dec 31 2021 v Unrealized Holding Gain or Loss - Equity Fair Value Adjustment Jan 1 2022 Cash 343034 Loss on Sale of Investments 8185 Debt investments e Textbook and Media
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