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On January 1, 2020 Genevieve Ltd. purchased 2 % $ 100,000 (par value ) bonds for $ 98,073 The bonds were purchased to yield 3
On January 1, 2020 Genevieve Ltd. purchased 2 % $ 100,000 (par value ) bonds for $ 98,073 The bonds were purchased to yield 3 % Interest is paid on July 1 and January 1 and the bonds mature on January 1, 2022. Genevieve uses the amortized cost method and the effective- interest method to amortize the premium. Genevieve has a year end of December 31 and follows ASPE. Required: a) Prepare the required journal entry on January 1, 2020. (1.5 marks) b) Prepare the bond amortization schedule. Round all values to the nearest dollar 7 marks I c) Prepare the required journal entry on July 1, 2020. (3 marks) What is the carrying value of the investment at December 31, 2020 ? e) Prepare the required journal entries on January 1
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