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On January 1, 2017, Pluto Corp. acquired 8%, $100,000 par value bonds of Uranus Ltd., to yield 6%. The bonds were dated January 1, 2017,
On January 1, 2017, Pluto Corp. acquired 8%, $100,000 par value bonds of Uranus Ltd., to yield 6%. The bonds were dated January 1, 2017, and mature on December 31, 2021, with interest payable each January 1. Pluto intends to hold the bonds to maturity and collect all principal and interest payments to maturity. The market value of the bond at December 31, 2017 was $109,000 and at December 31, 2018 was $107,000. Pluto follows IFRS. Required Prepare the following entries in Pluto’s books: Acquisition of bonds on January 1, 2017. Year-end adjusting entry at December 31, 2017. Receipt of the first interest payment on January 1, 2018. Year-end adjusting entry at December 31, 2018.
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Financial Reporting and Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
7th edition
1259722651, 978-1259722653
