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Lamar Insurance purchased $100,000 of 7% SVL bonds on January 1,2018,at a price of 82 when the market rate of interest was 12%. Lamar intends
Lamar Insurance purchased $100,000 of 7% SVL bonds on January 1,2018,at a price of 82 when the market rate of interest was 12%. Lamar intends to hold the bonds until their maturity date of January 1,2023. The bonds pay interest semiannually on each January 1 and July 1. Lamar recorded the following journal entries on January 1,2018 and July 1,2018:
Make the adjusting entries that Lamar Insurance would need to make on December 31,2018, related to the investment in SVL bonds.
Date Credit Journal Entry Accounts 1 Held-to-Maturity Investment in Bonds Cash Debit 82.000 Jan 82 000 Journal Entry Accounts Credit Debit 3 500 1 Cash Interest Revenue Credit Journal Entry Accounts 1 Held-10-Maturity Investment in Bonds Interest Receivable 1.800 (Click the icon to view the journal entries.) Read the requirements. Journal Entry Accounts Date Debit Credit Dec 31 How record the entry for the amortization of bond discount at December 31, 2018. Journal Entry Accounts Date Credit Dec How would the bonds be reported on Lamar Insurance's balance sheet as of December 31, 2018? (Abbreviation used AFSS =
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