Question
on January 1, 2020 genevieve Ltd purchased 2% 100000 ( par value) bonds for 98073. the bonds were purchased to yield 3 % . interest
on January 1, 2020 genevieve Ltd purchased 2% 100000 ( par value) bonds for 98073. the bonds were purchased to yield 3 % . interest is paid on July 1 and January 1 and the bonds mature on January 1, 2019. Genevieve uses the amortized cost method. and the effective interest method to amortize premium. Genevieve has a year end of December 31 and follows ASPE. required a) prepare the required journal entry on January 1, 2020 b) prepare the bonds amortization schedule. round all values to the nearest dollar c) prepare the required journal entry on July 1, 2020 d) what is carrying value of the investment at December 31, 2020 ? e) prepare the required journal entries on January 1, 2020
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