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On 6/1/18, Sugar Rush purchases bonds from Cookie Craving, paying $500,000. The bonds have a par value of $500,000, a stated rate of 9%, and
On 6/1/18, Sugar Rush purchases bonds from Cookie Craving, paying $500,000. The bonds have a par value of $500,000, a stated rate of 9%, and a maturity date of 5/31/22. Interest on the bonds is paid annually each 5/31. The fair value of the bonds equals $501,000 as of 12/31/18. Assuming Sugar Rush purchased the bonds with the intent to hold them until they mature, record ALL journal entry(ies) necessary on 12/31/18 for Sugar Rush related to its investment. Please clearly distinguish your debitis and credit(s)! Also, be sure to include financial statement effects (e.g., +A. -L, etc.) as we have been doing in class. See example below: Debit: Account Namel - A) Credit: Account Name) ) XXX
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