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how to find the discount on bond and the gain on investment. LU12 Sale of HTM Investments First payment Dec 31, 2021 Bond A: $700,000

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how to find the discount on bond and the gain on investment.
LU12 Sale of HTM Investments First payment Dec 31, 2021 Bond A: $700,000 principal, issued July 1, 2021. 12% semiannually coupon on June 30 and December 31. Matures on June 30, 2024. The market interest rate for bonds of similar risk and maturity is 14%. (boldok Company B bought it. Due to unforeseen circumstances, company B decided to sell its debt investment for $725,000 on January 5, 2022. Journal Entry - Jan 5, 2022 Debit Credit Cash 725,000 Discount on bond investment 28,703 Investment in bonds Gain on sale of investments 53,703 Realized NI See previous amortization table 12-12

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