Question
On January 1, 2022, Investor Limited Purchased a bond with the following characteristics: - Face Value of $60,000 with a coupon rate of 6% per
On January 1, 2022, Investor Limited Purchased a bond with the following characteristics:
- Face Value of $60,000 with a coupon rate of 6% per annum
- Interest Paid semi-annually on June 30 and December 31
- Maturity date: December 31, 2026
The bonds were priced to yield 8%, Investor Limited paid $55,133
At December 31, 2022, the bonds had a fair value of $59,000
Required
Assume that investor limited decides to account for this bond investment using FVOCI. Prepare the 2022 journal entries related to this bond investment. please don't use chat GPT to do this, It doesn't work. solve step by step please.
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
