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On January 1, 2018, Jawardene Limited paid $322,744.44 for 12% bonds with a maturity value of $300,000. The bonds provide Jawardene with a 10% yield.
On January 1, 2018, Jawardene Limited paid $322,744.44 for 12% bonds with a maturity value of $300,000. The bonds provide Jawardene with a 10% yield. They are dated January 1 , 2018, and mature on January 1, 2023, with paid on December 31 of each year. Assume that the bonds are accounted for at fair value through net income. The fair value of the bonds at December 31 of each year is as follows; Required a) Prepare the journal entry to record the bond purchase. b) Prepare an amortization table for the life of the bonds. c) Prepare the journal entries to record the interest received and recognition of fair value at December 31,2021. d) Prepare the journal entry to record the disposal of the bond at maturity
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