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On January 1, 2015, Stiller Co. purchased $80,000,000 in 8% bonds that will mature in 6 years. Management has the positive intent and ability
On January 1, 2015, Stiller Co. purchased $80,000,000 in 8% bonds that will mature in 6 years. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity, the market yield was 7%. Interest is received semiannually on June 30 and December 31. Stiller Co. follows IFRS. Prepare journal entries for the following transactions. Please make sure your final answer(s) are accurate to the nearest whole number. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Prepare the journal entry to record Stiller Co.'s investment on January 1, 2015. Date Page G1 Credit General Journal Account/Explanation PR Debit Cash 1/Jan Investments, held to maturity_ + -| Stiller Co.'s investment 83,865,333 83,865,333 b) Prepare the journal entry by Stiller Co. to record interest on June 30, 2015. Date General Journal Account/Explanation Page G1 PR Debit Credit 30/Jun + -
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