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On April 1, 2018, FTL Corp purchased $500,000 of 6% bonds for $525,200 plus accrued interest as an available for sale security. Interest is paid
On April 1, 2018, FTL Corp purchased $500,000 of 6% bonds for $525,200 plus accrued interest as an available for sale security. Interest is paid on July 1 and January 1 and the bonds mature on July 1, 2023.
a) Prepare the journal entry on April, 2018
b) The bonds are sold on November 1, 2019 at 104 plus accrued interest. Amortization was recorded when interest was received by the straight line method (by months and round to the nearest dollar). Prepare all entries required to properly record the sale.
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