Kevin Company acquired as an investment $250,000 of 7% bonds, dated January 1, 2020 and maturing on December 31 2022 The bonds were acquired in order to profit from price changes (hint then what kind of investment is this? The company wil receive interest annually, every December 31 through December 31, 2022. As a result of changing market conditions, the bord price was 95 on December 31, 2020 and 97 42 on December 31, 2021. Below, please find an amortization table evin Company's investment. Date Cash Int. Rev. Disc. Amort. Carry Value 01/01/20 243,556.75 12/31/20 17,500.00 19.484.54 (1.984.54) 245,541.29 12/31/21 17,500.00 19.643.30 (2.143.30) 247.684.59 12/31/22 17,500.00 19,815.41 (2,315.41) 250,000.00 1. What effective interest rate is earned by Kevin Company on this investment? 2. Give the required journal entry to mark the investment to market on December 31, 2020. For full credit piense show at work, including the tables you are creating to derive your answer. All tables used in your work must follow the format taught you in class for marking-to-market problems. 3. Give the required journal entry to mark the investment to market on December 31, 2021. For full credit, please show all work, including the tables you are creating to derive your answer. All tables used in your work must follow the format in class for marking-to-market problems. matryctor for grading Kevin Company acquired as an investment $250,000 of 7% bonds, dated January 1, 2020 and maturing on December 31 2022 The bonds were acquired in order to profit from price changes (hint then what kind of investment is this? The company wil receive interest annually, every December 31 through December 31, 2022. As a result of changing market conditions, the bord price was 95 on December 31, 2020 and 97 42 on December 31, 2021. Below, please find an amortization table evin Company's investment. Date Cash Int. Rev. Disc. Amort. Carry Value 01/01/20 243,556.75 12/31/20 17,500.00 19.484.54 (1.984.54) 245,541.29 12/31/21 17,500.00 19.643.30 (2.143.30) 247.684.59 12/31/22 17,500.00 19,815.41 (2,315.41) 250,000.00 1. What effective interest rate is earned by Kevin Company on this investment? 2. Give the required journal entry to mark the investment to market on December 31, 2020. For full credit piense show at work, including the tables you are creating to derive your answer. All tables used in your work must follow the format taught you in class for marking-to-market problems. 3. Give the required journal entry to mark the investment to market on December 31, 2021. For full credit, please show all work, including the tables you are creating to derive your answer. All tables used in your work must follow the format in class for marking-to-market problems. matryctor for grading
